Republic of Palau partners with Ripple to develop national digital currency

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Republic of Palau partners with Ripple to develop national digital currency By Hannah perez

The island country plans to issue and test a national stablecoin pegged to USD with the help of Ripple. Palau is now the second country to partner with Ripple to develop a CBDC.

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The Republic of Palau, an island country in Oceania, has partnered with the company Ripple Labs to leverage its blockchain technology for the development of a national digital currency.

The operating company of the digital asset XRP reported on the partnership in a statement published on Tuesday. “We are pleased to announce a new partnership with Republic of Palau to explore the country’s first national digital currency and its use cases with XRP Ledger (XRPL)“, wrote Ripple.

It should be noted that XRP Ledger is the private ledger technology of Ripple. The platform claims to be carbon neutral and 120,000 times more energy efficient than blockchains proof of work (PoW), such as Bitcoin.

Palau tests a national stablecoin

According to the information, the association will initially focus on developing a strategy for cross-border payments, as well as creating a stablecoin backed by US dollar. Ripple will be responsible for providing technical, commercial, design and policy support to Palau.

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Also, with technology XRP Ledger The country will be able to explore a national stablecoin and its possible use cases, a development that could represent an alternative to central bank digital currencies (CBDC). Ripple He said Palau could have its currency as early as next year. “This could see the implementation of the world’s first government-backed national stablecoin in the first half of 2022.“Stated the company.

For his part, the president of Palau, Surangel Whipps Jr., highlighted that the initiative is part of the nation’s commitment to innovate and be at the forefront of financial technologies. The The president also assured that a national digital currency could represent a financial inclusion tool for the citizens of Palau.

The first phase of the partnership will focus on a cross-border payments strategy and explore options to create a national digital currency, giving Palau citizens greater financial access.

The statement does not provide further details on which agencies it will work with. Ripple for the development of digital currency. Made up of more than 300 islands, the country does not have a central bank. Palau’s legal tender is the US dollar.

Ripple already has two CBDC partners

The partnership with Palau comes just two months after a similar agreement with Bhutan. As reported DailyBitcoin, Ripple announced in late September that it had joined the central bank of Bhutan in helping the nation with the development of its CBDC.

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As such, the monetary authority of the Asian nation hopes to take advantage of the distributed ledger technology of Ripple for the issuance of a digital version of the ngultrum, the national currency of Bhutan; as well as a pilot test program for the use of that currency in retail, wholesale and cross-border payments.

The agreements of Ripple with Palau and Bhutan are part of the company’s effort to provide technological support to nations interested in developing a digital currency. In March, Ripple announced for the first time that it would be testing a private version of its network designed to provide central banks with a solution for issuing CBDCs.

Ripple He has also been working in the area of ​​cross-border payments with several countries and banks. This year, the firm introduced an international remittance service for Cambodia. Meanwhile, the company continues in a legal battle with the United States Securities and Exchange Commission that began in late 2020; Although the dispute could finally conclude next year, as the CEO of Ripple, Brad Garlinghouse.


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Sources: Ripple, file

Article by Hannah Estefanía Pérez / DailyBitcoin

Image from Unsplash

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