The National Bank of Georgia has the mandate to maintain price and financial stability. The rise of digital technologies underscores the necessity to update central bank money - by creating a digital version of the GEL - to better serve the digital economy and increase public policy efficiency. 

The NBG is considering launching a publicly available Central Bank Digital Currency (CBDC) to leverage new technologies to enhance efficiencies of the payment system and financial inclusion. The CBDC is a direct liability of the central bank that can be used to settle payments, or as a store of value and will have legal tender status. In this journey, NBG is inviting technology firms, Fintech companies, and interested financial institutions to join efforts to explore the frontiers of financial technology.

The Bank for International Settlements (BIS), the largest association of the central banks, regularly monitors progress towards the CBDC. It should be noted, that recently the leading central banks have been actively working on introducing CBDC, the pilot projects are being set up and the search for optimal implementation is underway.

CBDC holds the promise to unlock the tremendous value of innovative business models for the benefit of society. The introduction of CBDC could increase financial intermediation efficiency, help introduce new financial technologies, facilitate financial inclusion, and reach previously unbanked populations. It could also increase monetary policy efficiency by improving monetary policy's monetary transmission mechanism and welfare effects for the society.

CBDC's may become essential for the financial ecosystem and spur private innovation and development of new financial technologies. Therefore, full private sector involvement in technology choices, interface design, customer management, KYC and AML/CFT, regulatory compliance, and data management will be crucial.

If you are developing CBCD technology and are interested in joining us in this ambitious journey, please contact us via the Financial Innovation Office at InnovationOffice@nbg.gov.ge.

More information is available here