The National Bank of Georgia is working on the introduction of the digital lari. The vice-president of the central bank, Papuna Lezhava, said that the pilot program is planned to be launched in 2022.
“85% of the world's central banks are already working on a digital currency, some are in the research stage, some are testing, some have already implemented, including China and the Bahamas. We also want to be at the forefront of this trend,” he told reporters on Tuesday.
“Digital currency is not a cryptocurrency, but the evolution of cash. It will most likely also be based on the blockchain, and will also be a fast and cheap payment method. However, unlike modern cryptocurrencies, there will be no mining. The National Bank will be the only issuer of digital currency,” noted Mr. Lezhava.
According to him, the digital lari will be able to compete with cryptocurrencies in some services, but will not have the character of speculative accumulation.
At the initial stage, the digital lari is planned to be introduced for retail sales.
The National Bank believes that the digital currency will help to increase the efficiency of the payment system and financial accessibility.
"Digital lari will become a faster and cheaper means of payment than traditional means. It will work 24 hours a day. All transactions do not require an Internet connection. But the main advantage is that it will be technologically open to other types of technologies and as compatible as possible. Today, neither paper lari nor other means of payment have such luxury," the Vice President of the Central Bank added.
Earlier, CySecurity News was reported that the Verkhovna Rada of Ukraine has adopted a law on the legalization of cryptocurrencies, which will allow using cryptocurrency for settlement transaction.
