Island Nation Palau Partners with Ripple for Digital Currency Development
A partnership between Ripple and the Pacific island country of Palau to study the country’s initial national digital currency and its use cases using the XRP Ledger has been formed. Ripple offers enterprise level blockchain and cryptocurrency solutions for cross-border payments (XRPL).
The collaboration will begin focusing on creating strategies for trans-border payments and a US dollar-pegged digital currency for Palau. It is possible that the world’s foremost government-backed national stablecoin will be implemented in the initial half of next year, with Ripple providing technical, commercial, architecture, and policy backing to the country.
In the meantime, developing a stablecoin backed by the US dollar and related use cases – such as a business register – on the XRP Ledger might give a feasible substitute to central bank digital currencies for nations such as Palau, according to the company.
According to Palau President Surangel Whipps, Jr., “the initial phase of the cooperation will concentrate on developing a cross-border payments strategy and examining prospects for establishing a national digital currency, which will provide the residents of Palau with more financial accessibility.”
As per the firm, Palau picked Ripple because of its expertise in blockchain and the development of worldwide payment systems, and the XRPL because it is carbon neutral and 120,000 times better energy-conserving than proof-of-work blockchains, which are already in use.
This technology allows financial organizations and government agencies, such as Palau, to completely settle trades for fractions of a cent and in as little as three to five seconds using fractional reserve banking. A total of 5,400 currency units have been issued and transacted on the XRPL platform to far.
“We have a tremendous chance to put together our technological capabilities with the particular qualities of Palau in order to have a genuine economic and social effect for the nation,” says James Wallis, vice president of central bank relations at Ripple.