Ripple cooperates with the Republic of Palau to develop a national digital currency

The digital payment network Ripple has partnered with the Republic of Palau to develop its own digital currency. The payment network still shoulders the mission of leading the global payment industry.That is, despite the issues it deals with in the United States

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Like El Salvador, the country does not have its own legal tender, or even a central bank. Instead, its legal tender is the U.S. dollar. The cooperation with Ripple will focus on the development of a U.S. dollar-backed digital currency that is more like a stable currency than a central bank digital currency (CBDC). This currency will help facilitate cross-border payments in the country.

Ripple develops the first government-backed national stablecoin

According to Tuesday announcement Through Ripple, the partnership will focus on formulating a cross-border payment strategy. The implementation of the plan means that Palau will have the world’s first government-backed national stablecoin.

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Based on its experience in building a global payment system, Ripple plans to implement a national stable currency in the first half of 2022 and provide Palau with technical, business, design and policy support.

Palau President Surangel Whipps Jr. is pleased to cooperate with Ripple to advance the country’s financial innovation and technology. He also acknowledged the potential of blockchain technology to change the country’s economy.

“The first phase of the cooperation will focus on cross-border payment strategies and explore options for creating a national digital currency to provide Palau citizens with more financial channels.”

Palau chooses to create its digital currency XRP ledger (XRPL) as an alternative to Central Bank Digital Currency (CBDC). Carbon neutrality and 120,000 times higher energy efficiency than proof-of-work blockchain is an additional advantage. In addition, XRPL also provides other advantages such as scalability, speed, and low cost.

XRP at $1.025 | Source: XRPUSD on TradingView.com

James Wallis, Vice President of Central Banking at Ripple, said: “We are very happy to work with Palau to achieve its financial and climate-related goals.” “We have a great opportunity to combine our technology and experience with Palau’s unique characteristics. Together, it will bring real economic and social impact to the country.”

Given the two parties’ concerns about climate and environment, this partnership is ideal.

Ripple’s net zero carbon goal

Last year, the leading enterprise blockchain payment solution provider Firm Achieve carbon neutrality by 2030.

Subsequently, Ripple co-founded EW Zero, a tool to ensure the sustainability of the blockchain industry. The XRP Ledger Foundation was the first to use this tool.

About two months ago, the company also cooperated with Bhutan, the only carbon-negative country in the world, to develop its CBDC.

Featured image by Financial Times, Chart from TradingView.com

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