Recently, FinTech firm Ripple talked about its newly formed partnership with a small Western Pacific nation.
In a blog posted published on Tuesday (November 23), Ripple announced “a new partnership with the Republic of Palau to explore the country’s first national digital currency and its use cases with the XRP Ledger (XRPL).”
Here is some information abut Palau from Wikipedia:
“Palau is an island country in the western Pacific. The nation has approximately 340 islands… It has a total area of 466 square kilometers (180 square miles)… The country uses the United States dollar as its currency.“
Ripple says that this new partnership will “initially focus on developing strategies for cross-border payments and a USD-backed digital currency for Palau.” This could mean “the implementation of the world’s first government-backed national stablecoin in the first half of 2022 for which Ripple would provide Palau with technical, business, design and policy support.”
Ripple believes that “exploring a USD-backed stablecoin and associated use cases—such as a corporate registry—on the XRP Ledger could provide a viable alternative to central bank digital currencies (CBDCs) for countries like Palau.”
Palau President Surangel Whipps Jr. had this to say:
“As part of our commitment to lead in financial innovation and technologies, we are delighted to partner with Ripple. The first phase of the partnership will focus on a cross-border payments strategy and exploring options to create a national digital currency, providing the citizens of Palau with greater financial access.“
The most interesting part of this announcement was the following paragraph:
“Palau chose Ripple because of its extensive experience in blockchain and building global payment systems, and the XRP Ledger because it’s carbon-neutral and 120,000x more energy-efficient than proof-of-work blockchains. What’s more, the XRPL provides significant benefits such as scalability, speed and low cost.“
James Wallis, VP of Central Bank Engagements at Ripple, stated:
“We are excited to be working with Palau to achieve its financial and climate-related goals. We have a wonderful opportunity to bring together our technology and experience with the unique characteristics of Palau to make a real economic and social impact for the country.“
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