The National Bank of Georgia Shortlists Nine Companies for CBDC Project
The National Bank of Georgia (NBG) has announced that it has shortlisted nine companies to compete as technology partners for its central bank digital currency (CBDC) project, known as Digital GEL. The NBG plans to introduce a Limited Access Live Pilot Environment to test the CBDC’s technology capabilities and potential application areas through use cases.
“We are delighted to announce that after a long-lasting research stage and careful consideration, NBG has shortlisted 9 companies that have demonstrated sufficient technology potential, maturity, capacity, relevant experience, and desire to join our on-field exploration.”
Ripple, Bitt, Broxus, and several fintech firms have been selected to participate in the second phase of testing for the Digital GEL project. Ripple’s CBDC advisor, Antony Welfare, stated that the project is “entering a new stage” and that the NBG plans to create a real pilot environment with limited access.
After the selection phase is completed, the NBG will choose a single technology provider among the shortlisted companies to move forward to the pilot stage and conduct trials for its CBDC.
“At this stage, NBG stays technologically agnostic and considers different underpinning technology solutions to the Digital GEL project that the shortlisted companies can offer.”
Georgia’s Progress Towards a Digital Lari
Georgia has been working on its pilot version of the ‘digital lari,’ which was initially expected in 2022 but has been postponed until this year. The NBG stated that it would release a document outlining the concept of a national digital currency in the coming months. The digital lari is expected to be a cheaper, more secure, and faster means of payment compared to the current fiat lari in both its cash and non-cash forms.
Georgia had previously outlined its plans to launch a publicly available CBDC in 2021 and invited fintech companies to collaborate on the Digital GEL project.
Hot Take: Georgia Takes Steps Towards a Central Bank Digital Currency
The National Bank of Georgia is making progress in its efforts to develop a central bank digital currency. By shortlisting nine companies as potential technology partners for its CBDC project, the NBG is demonstrating its commitment to exploring the possibilities of digital currency. This move comes as many countries around the world are considering or actively developing their own CBDCs. With the creation of a Limited Access Live Pilot Environment, Georgia aims to test the technology capabilities and potential applications of its CBDC. The selection of a single technology provider among the shortlisted companies will pave the way for further trials and advancements in this exciting development.
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