National Bank of Georgia Advances Digital Lari CBDC Research

Digital Lari CBDC Research Progresses

The National Bank of Georgia (NBG) is moving forward with its exploration of a digital lari central bank digital currency (CBDC). This initiative is set to progress within a limited-access live pilot environment, marking a significant step in the country's digital currency efforts.

Participation and Selection Process

Nine companies have been chosen to participate in this pilot project, including notable names such as Ripple Labs. From this group, one company will be selected to advance to the next stage of testing. This selection process aims to identify the most viable solution for implementing the CBDC effectively.

Proposed Two-Tier Design

The NBG's paper, released earlier this year, outlines its consideration of a two-tier design for the digital lari. This design would involve third-party providers offering wallets, enabling a more decentralized approach. The CBDC would also be programmable, which could facilitate asset tokenization, thereby enhancing the currency's functionality.

Implications for Georgia's Financial Ecosystem

The development of a digital lari aligns with global trends toward digital currencies and could significantly impact Georgia's financial ecosystem. By exploring advanced features like programmability and tokenization, the NBG aims to create a more flexible and efficient currency system. This initiative reflects a broader commitment to embracing technological innovations in finance.

The advancement of the digital lari CBDC is a strategic move by the National Bank of Georgia, aiming to keep pace with digital transformation in the financial sector. As the project progresses, the selected company's contribution will be crucial in shaping the future of Georgia's digital currency landscape.