Fintechs invited to work on the digital currency of the Georgian central bank

The National Bank of Georgia (NBG) has called on fintech companies, financial institutions, and technology companies to support their efforts to create a digital currency. The central bank of Georgia is willing to use new technologies to increase the efficiency of the country's payment system and to encourage financial participation. Georgia central bank Mulling Digital GEL NBG is now inviting companies from innovative industries and related financial institutions to join a public-private partnership that aims to facilitate the adoption of a central bank digital currency (CBDC). The bank plans to launch the digital version of Georgian Lari (GEL), the legal currency and the national fiat currency as a public currency. The National Bank of Georgia announced on its website that digital GEL can be used to make payments or as a store of value. But what management really hopes to achieve with its currency is "unlocking the enormous value of innovative business models for the benefit of society" and "reaching out to non-bank institutions that used to be". The bank explains: The rise of digital technologies underscores the need to update the central bank's currency to better serve the digital economy and increase the effectiveness of public policies. NBG also notes that it supports a regulatory sandbox approach in the development of digital GEL. The bank plans to leverage its regulatory laboratory, a framework that allows financial sector entities under its control to test innovative products and services in real-time and controlled environments. The Financial Authority believes this will help it develop its new regulations and update the CBDC's legal framework. In its project announcement, the National Bank of Georgia acknowledges the potentially disruptive nature of the technology involved in CBDCs and the need for "sound risk management throughout the development process". The bank also says it shares the principle

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