Regulation
Ripple and National Bank of Georgia collaborate 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.
A high-profile meeting marks a strengthening of the 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 Ripple’s vice president for central bank engagement, James Wallis .
This meeting, which took place in Tbilisi, was officially announced by the Georgian central bank on June 8 via a LinkedIn post, underlining its importance in the ongoing relationship between Ripple and NBG.
During the meeting, James Wallis had the opportunity to introduce Georgian officials to Alistair Brown, a representative of Ripple partner EPAM Systems.
EPAM Systems, headquartered in Newtown, Pennsylvania, is renowned for its expertise in software engineering, digital platform engineering and digital product design services. His involvement highlights the technical depth Ripple is incorporating into his collaborations.
Ripple and EPAM meet the National Bank of Georgia. Source: NBG
Discussions at this high-profile meeting revolved around potential collaborations for the digitalization of Georgia’s economy. This builds on an already established relationship where Ripple has been instrumental as a technology partner for the NBG pilot project on the digital lari, a proposed central bank digital currency (CBDC).
The pilot was first announced by 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 the digital lari, underlining its key 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 around the world, working with central banks in countries such as Colombia, Bhutan, Palau, Montenegro and others.
Ripple’s commitment to supporting the global development of CBDCs was further highlighted in a detailed 23-page white paper released on December 14, 2023. The document provides a comprehensive overview of CBDCs, discussing its benefits such as greater financial inclusion, cross-border payments simplified and strengthening the control of monetary policy.
Additionally, the white paper delves into 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 the lack of a uniform global regulatory framework, minimal consumer education, privacy and security concerns, 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. While Ripple’s efforts are seen as pioneering in the field of digital payments and CBDC development, there are critics who express concerns about potential drawbacks.
These include privacy concerns and the possibility of increased government surveillance through such digital currencies. However, as Ripple continues to expand its presence in the CBDC arena, its collaborations, such as the one with Georgia, demonstrate an ongoing commitment to redefining financial technology and promoting a more inclusive and efficient global financial system.