The National Bank of Georgia (NBG) has been actively researching the capabilities, design, and potential use cases of central bank digital currencies (CBDCs) since 2020. CBDCs have the potential to promote innovation in financial technologies, increase the efficiency of payment systems, and improve financial inclusion.
On April 30, 2021, NBG announced the first stage of the Digital Lari project and invited interested financial technology providers to participate. Since then, NBG has been collaborating with international and local fintech companies and financial institutions to address challenges related to technology, supervision, and financial issues using CBDCs.
NBG is now announcing the deadline for fintech companies to express interest in participating in the Digital Lari project as February 15, 2023. After the conclusion of the first stage, NBG will select a technological partner to provide CBDC technology for the Digital Lari pilot project, based on information provided by the companies, including the CBDC system, technical capabilities, security, and technological proposal for the pilot project.
Digital Lari has the potential to significantly impact existing monetary policy and payment systems, and drive the development of financial technologies and the introduction of innovative financial products and services. However, the risks associated with launching a digital currency must also be considered. To minimize these risks, NBG plans to launch a limited access live pilot of Digital Lari.
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