Nine Companies, Including Ripple Labs, to Participate in Georgia’s CBDC Pilot
The National Bank of Georgia (NBG) has announced that it will conduct research on a digital lari central bank digital currency (CBDC) through a limited-access live pilot. The project will involve nine companies, including Ripple Labs, and one of them will be selected to proceed to the next stage of testing.
Two-Tier Design and Programmable Features
In a paper released in February, the NBG revealed its plans for a two-tier design for the CBDC, with third-party wallets. The digital lari would be programmable and support asset tokenization.
Potential Use Cases for Digital Lari
In an interview in June, Varlam Ebanoidze, NBG’s head of fintech, highlighted potential use cases for the digital lari, such as agricultural insurance and automation of real estate transactions. He also expressed the desire for interoperability with the digital euro while maintaining monetary freedom.
Timeline and Expression of Interest
The NBG first announced its consideration of issuing a CBDC in May 2021 but did not provide a specific timeline. In January, the bank solicited expressions of interest from fintech firms to participate in a limited live pilot.
Hot Take: Georgia Explores Digital Lari as Part of CBDC Research
The National Bank of Georgia is taking steps towards developing its own central bank digital currency (CBDC). By conducting a limited-access live pilot with nine participating companies, including Ripple Labs, Georgia aims to explore the potential benefits and use cases of a digital lari. The proposed two-tier design and programmable features highlight the innovative nature of this CBDC project. With a focus on interoperability with the digital euro and maintaining monetary freedom, Georgia is positioning itself for potential integration into the European Union. As the research progresses, it will be interesting to see how Georgia’s CBDC pilot unfolds and whether it paves the way for wider adoption of digital currencies in the region.
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