National Bank of Georgia Prepares for CBDC Pilot Testing Phase

The Central Bank of Georgia popularly known as the National Bank of Georgia (NBG) is still mulling the idea of rolling out the pilot phase for its Central Bank Digital Currency (CBDC) dubbed Digital Lari. 

However, it has been decided that a concise document that addresses the concept of the national digital currency will be published in the coming months. In the end, a final decision will be made on the proposals for the pilot phase which is scheduled for the first half of 2023.

The Digital Lari whitepaper will serve as a boost for participating partners, propelling them to make all necessary adjustments to their bids for the next phase of the CBDC. 

Speaking to local TV channel Rustavi 2 TV, the Deputy Governor and board member of NBG Papuna Lezhava clarified “In the first half of 2023, we will publish the document and soon after that, together with the winning partner, we will discuss how long it would take to implement the project.”

NBG CBDC Pilot Testing Phase Scheduled For 2022

Markedly, the launch of the Digital Lari pilot phase was scheduled to happen last year and it was targeted at retail users. 

”A digital lari is not cryptocurrency but is the evolution of cash. It will improve the efficiency of the payments system and financial inclusion,” Lezhava said, adding that the CBDC will compete with other forms of digital assets while offering easier and faster transaction options.

“The digital lari will become a cheaper, more secure and faster means of payment than the current fiat lari in its cash and non-cash forms. The services of intermediaries, commercial banks or payment systems, will not be required to carry out operations with the digital lari,” the bank announced.

Its trial launch was however postponed to this year and according to the deputy governor of the apex bank, a few alternative proposals for testing the implementation of the CBDC has been approved. He claimed that the only constraint is choosing whether the project should commence. 

“At the first stage, it will be a rather limited pilot version. On this basis, the technical characteristics of the ‘digital lari’ will be evaluated.”