In a significant announcement, the National Bank of Georgia (NBG) has shortlisted Ripple Labs alongside eight other firms as potential technology partners for its Central Bank Digital Currency (CBDC) pilot project titled “Digital GEL.” This development was made known through an official press release by the NBG on September 28, 2023. In the press release, the NBG revealed its plan to introduce a “Limited Access Live Pilot Environment” in order to test the technological feasibility and potential applications of a CBDC system. The bank emphasized its current “technologically agnostic” approach, indicating its openness to a variety of technological backbones for the Digital GEL project.
The nine companies that made it to the shortlist are AUGENTIC GmbH, Bitt Inc., Broxus Holdings Ltd., Currency Network Ltd., DCM Corp Limited, eCurrency Mint Inc., FARI Solutions Ltd., Ripple Labs, Inc., and Sovereign Wallet Co., Ltd. Each of these companies was recognized for demonstrating “sufficient technology potential, maturity, capacity, relevant experience, and desire to join” the NBG’s endeavor.
Ripple’s inclusion in the Digital GEL initiative is seen as a validation of previous speculations, especially after a high-profile meeting that took place last year. In May 2022, Ripple CEO Brad Garlinghouse held discussions with Georgia’s Prime Minister Irakli Garibashvili and Vice Prime Minister Levan Davitashvili in Davos. During the meeting, Prime Minister Garibashvili highlighted Georgia’s ambitious roadmap for blockchain integration and referred to Georgia as a pioneer in assimilating blockchain into public services.
James Wallis, Ripple’s Vice President for CBDC Engagement, acknowledged the progress of the Digital GEL initiative in a tweet. Wallis quoted the National Bank of Georgia and expressed his excitement about being part of the next stage of the pilot project. However, it is important to note that being shortlisted does not guarantee that Ripple will ultimately be awarded the contract to implement the Georgian CBDC. The NBG will identify a single technology partner to move to the pilot stage and test the CBDC platform in a limited-time run live environment before evaluating the practical use cases. Notably, the announcement does not mention the XRP token, which is associated with Ripple.
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Ripple’s pursuit of global CBDC partnerships extends beyond Georgia. The company is reportedly in advanced talks with nearly 30 countries regarding their CBDC solutions. Ripple’s involvement in pilot stages with countries such as the Republic of Palau, Montenegro, Bhutan, Hong Kong, and Colombia has already been confirmed.
On the price front, XRP, Ripple’s native cryptocurrency, showed a slight uptrend, trading at $0.51076 at the time of writing. It is worth noting that the press release and the article do not directly attribute Ripple’s price movement to its inclusion in the Digital GEL initiative.
In conclusion, Ripple’s inclusion in the shortlist for the National Bank of Georgia’s Central Bank Digital Currency pilot project is a significant development for both Ripple and the CBDC space. The partnership, if awarded, could serve as a major milestone in Ripple’s goal to support global CBDC implementations. However, it is important to acknowledge that the selection process is ongoing, and the ultimate technology partner will be identified after thorough evaluation and testing.
