The National Bank of Georgia reportedly claimed that it is having plans down its pipeline to roll out a central bank digital currency (CBDC). 

Specifically, the central bank reportedly dropped a few hints towards the release of a CBDC, in its attempts to streamline efficiencies of the domestic payment system and financial inclusion.”

The NBG reportedly shared that it would be opening doors welcoming fintech companies and different financial establishments to take part in the initiative, dubbed  “Digital Gel” – taken from the name of the nation’s fiat currency, the lari.

“CBDC holds the promise to unlock the tremendous value of innovative business models for the benefit of society”.

The roll-out of a CBDC could reportedly make financial intermediation more effective, assist in releasing new financial technologies, supporting financial inclusion, as well as tapping into initially unbanked populations. 

Nonetheless, the bank reportedly discussed the potential risks occurring in the rollout of a CBDC in Georgia, regarding the “new and potentially disruptive technology.” 

Consequently, the NBG reportedly shared it is considering carrying out extensive testing of the CBDC in a controlled environment to make sure the release happens without any negatively disruptive incidents. However, specifics regarding the roll-out timeline are yet to be disclosed. 

Having a population of approximately  4 million and a gross domestic product of around $15 billion, Georgia reportedly belongs to the list of smaller nations looking into CBDCs. 

The Bahamas reportedly officially made its Sand Dollar central bank digital currency in October last year, while China has been carrying trial phases for its digital yuan in a few selected urban areas, before a full-scale roll-out.