The Central Bank of Montenegro (CBCG) has announced its plan to develop a pilot program for a central bank digital currency (CBDC) or national stablecoin in collaboration with blockchain provider Ripple.

Despite using the euro as its de facto currency, the CBCG aims to identify practical applications of such a coin and simulate its circulation through the pilot program.

In a statement, CBCG Governor Radoje Zugic said that the project will “analyze the advantages and risks that CBDCs or national stablecoins could pose concerning electronic means of payment availability, security, efficiency, compliance with regulations, and most importantly, the protection of end users’ rights and privacy.”

Montenegro is not a member of the European Union (EU) and has adopted the euro without joining the eurozone.

While the EU and the European Central Bank (ECB) are set to decide on whether to introduce a digital euro later this year, over 100 countries are exploring the development of a CBDC for public use, with some already entering the practical phase.