Ripple, a San Francisco-based software company, is collaborating with the Republic of Palau to create a government-backed stablecoin and facilitate cross-border money transfers.
Ripple, the partnership with the Western Pacific country; He says he will focus on “strategies for cross-border payments and developing a USD-backed digital currency for Palau” on the XRP Ledger (XRPL).
Surangel Whipps Jr., President of the Republic of Palau, said that this Western Pacific nation’s partnership with Ripple will improve financial access for citizens:
“We are excited to collaborate with Ripple as part of our commitment to being a leader in financial innovation and technology. The first phase of the partnership will focus on a cross-border payment strategy and exploring options for creating a national digital currency to give Palau citizens greater financial access.”
According to the payments company, the government-backed national stablecoin will be viable in the first six months of 2022. Again, according to Ripple, the Republic of Palau-backed stablecoin “could be a viable alternative to central bank digital currencies (CBDCs).”
Ripple also says that the Republic of Palau chose the XRP Ledger because of its efficiency and environmental friendliness.
“Palau, a longtime leader in the global climate debate, commends Ripple for its extensive experience in building blockchain and global payment systems; Chose XRP Ledger because it is carbon neutral and 120,000 times more energy efficient than Proof-of-work blockchains. Moreover, XRPL; It also provides important advantages such as scalability, speed and low cost.”