Regulation
Ripple and National Bank of Georgia partner on digital currency
Ripple, a major player in the cryptocurrency landscape, is further strengthening its collaboration with the Republic of Georgia through initiatives aimed at advancing the digitalization of the local economy.
This partnership is facilitated through discussions with the National Bank of Georgia (NBG) and involves exploring avenues to leverage financial technology to transform Georgia’s economic landscape into a more digitalized and efficient model.
High-level meeting marks deepening partnership
Recently, key figures, including Natia Turnava, acting governor of the NBG, and Varlam Ebanoidze, who heads the bank’s financial technology development and supervision department, met with the central bank’s vice president for engagements of Ripple, James Wallis.
This meeting, which took place in Tbilisi, was officially announced by the Georgian central bank on June 8 via a LinkedIn post, highlighting its importance in the ongoing relationship between Ripple and the NBG.
During the meeting, James Wallis had the opportunity to introduce Alistair Brown, a representative of Ripple partner EPAM Systems, to Georgian officials.
EPAM Systems, based in Newtown, Pennsylvania, is renowned for its expertise in software engineering services, digital platform engineering and digital product design. His involvement highlights the technical depth that Ripple integrates into its collaborations.
Ripple and EPAM Meet with the National Bank of Georgia. Source: BNB
Discussions at this high-level meeting revolved around potential collaborations to digitalize the Georgian economy. This builds on an already established relationship in which Ripple has been instrumental as a technology partner for the NBG pilot project on digital lari, a proposed central bank digital currency (CBDC).
The pilot was first announced by the NBG in September 2023 when it invited nine companies, including Ripple Labs, to participate. Ripple Labs was ultimately chosen as the official technology partner to develop digital lari, highlighting its central role in this transformation effort.
Ripple’s Global CBDC Initiatives and Vision
Ripple’s commitment is not limited to Georgia. The company has been actively involved in similar CBDC initiatives across the world, collaborating with central banks in countries such as Colombia, Bhutan, Palau, Montenegro and others.
Ripple’s commitment to supporting the global development of CBDCs was outlined in a detailed 23-page white paper released on December 14, 2023. The document provides a comprehensive overview of CBDCs, discussing their benefits such as enhanced financial inclusion, streamlined cross-border payments and strengthened control of monetary policy.
Additionally, the white paper expands on the potential of asset tokenization, a process of converting tangible assets into digital tokens on the blockchain, which Ripple supports as a key aspect of CBDC development.
However, Ripple also recognizes the challenges such as lack of a uniform global regulatory framework, minimal consumer education, concerns over privacy and security, digital identity verification issues, interoperability issues between CBDCs, and the need for offline transaction capabilities.
Despite these obstacles, Ripple maintains that these challenges are not insurmountable. Although Ripple’s efforts are considered pioneering in the field of digital payments and CBDC development, some critics express concerns about potential downsides.
These include fears over privacy and the possibility of increased government surveillance via these digital currencies. However, as Ripple continues to expand its footprint in the CBDC space, its collaborations, like the one with Georgia, demonstrate an unwavering commitment to redefining financial technology and fostering a more inclusive and efficient global financial system.