The central bank of Georgia intends to publish a document detailing the concept of a national digital currency in the coming months. Other participating parties will use it to finalize their proposals for the pilot that the monetary authority plans to start in the first half of the year.
Georgia financial authorities prepare for digital currency tests
The National Bank of Georgia (NBG) is to publish a ‘digital lari’ white paper, which will allow potential partners to fine-tune their proposals for the testing phase of the project. A pilot version of the central bank digital currency (CBDC) was initially expected in 2022, but the NBG postponed testing to this year.
“In the first half of 2023, we will publish the document and soon after, together with the winning partner, we will discuss how long it would take to implement the project,” Lieutenant Governor Papuna Lezhava explained in an interview with the Rustavi 2 TV channel.
Several alternative approaches to testing the digital incarnation of the Georgian lari have already been approved, the official further revealed. Noting that it remains to be decided whether to proceed with the realization of the project, Lezhava said:
In the first stage, it will be a fairly limited pilot version. On this basis, the technical characteristics of the ‘digital lari’ will be evaluated.
“The mandate of the NBG is to guarantee financial and price stability. The development of digital technologies has necessitated the development of the central bank currency and the creation of a digital version of the lari,” Georgia’s monetary policy watchdog said in an earlier statement.
The bank explained that the need for a CBDC also arises from the need to better meet the requirements of the digital economy and increase the effectiveness of economic policy. He also emphasized that the state-backed currency will be legal tender in Georgia.
“The digital lari will become a cheaper, safer and faster means of payment than the current fiat lari in its cash and non-cash forms. The services of intermediaries, commercial banks or payment systems will not be required to carry out operations with the digital lari”, detailed the NBG while noting that the new platform will also be able to work offline.
Do you think the National Bank of Georgia will issue a digital lari this year? Let us know in the comments section.
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