The National Bank of Georgia (NBG) announced that it’s considering launching its own CBDC (Central Bank Digital Currency). Georgia central bank has invited a fintech firm and others to take part in the CBDC project name “Digital Gel”.
The digital version of Georgian lari (GEL) will help unlock value in the business model and boost the national economy. The project name is after the currency code for the Georgian lari, GEL. To this end, it formed its strategy around the Bank for International Settlements (BIS) guidelines for CBDC.
“The Introduction of CBDC could increase Financial Intermediation efficiency, help introduce new financial technologies, facilitate financial inclusion, and reach previously unbanked populations.”
However, the bank mentioned the possibility of risk in the launch of a CBDC in Georgia given the “New and Potentially disruptive technology”. The NBG said it might conduct massive testing of CBDC in a controlled environment to ensure a smooth rollout.
Roughly Population of 4 million and gross domestic product approximately $15 billion, Georgia falls at smaller end countries exploring CBDCs. Accenture announced this week in the US that it would be partnering with Digital Dollar Foundation to conduct CBDC trials.