The National Bank of Georgia (NBG) has selected Ripple Labs, a blockchain payment network, as its official technology partner to develop a digital lari, the central bank’s digital currency (CBDC) project.
In a statement, Ripple announced that the collaboration would include the deployment and testing of the digital lari initiative through the Ripple CBDC platform. NBG will utilize this enhanced CBDC platform to assess the potential applications of the digital lari and determine its advantages for government, businesses, and individual retail users.
Before being appointed as NBG’s technology partner, Ripple underwent a rigorous and meticulous selection process. In September, NBG revealed its intention to advance its CBDC project by introducing a restricted-access direct pilot environment.
During the initial selection phase, NBG chose nine companies based on their technological capabilities, maturity, capacity, suitable platforms, and enthusiasm for practical evaluation. Ripple was included alongside Augentic, Bitt Inc., Broxus, Money Network, DCM Corp, and other companies.
According to NBG’s announcement, the selection committee considered various factors, including understanding the project’s objectives, its potential applications, and strong commitment to the project’s success.
In July, Ripple received recognition from the Monetary Authority for its contributions to the development of digital currency and best sustainable practices, particularly for its role in driving innovation in the CBDC space.
Before partnering with NBG for the digital lari project, Ripple had proactively collaborated with organizations conducting in-depth research on CBDC implementation. Ripple previously partnered with Colombia’s central bank, Banco de la República, to utilize blockchain technology applications in its digital peso pilot by leveraging the Ripple CBDC platform.