Ripple to help Republic of Palau build a CBDC
In a press release, Ripple said it would help the Republic of Palau, a small island nation, build its own Central Bank Digital Currency or CBDC. Furthermore, the XRP Ledger will also partner up with the authorities to build a USD-pegged stablecoin, helping develop concepts such as corporate registries in the country.
Ripple to focus on cross-border payments
Ripple and the Republic of Palau authorities will try and develop channels for easy cross-border transactions for the citizens of the island nation. As per the press release, this development will give birth to the first "government-backed national stablecoin in the first half of 2022, for which Ripple would provide Palau with technical, business, design and policy support.""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," President Surangel S. Whipps Jr. said.Palau chose Ripple because of its carbon neutrality and impressive work in the blockchain industry. The XRP ledger is known for its speed, scalability, and low cost. Furthermore, the Ledger is 120,000 times more energy-efficient than the traditional proof-of-work cryptocurrencies.
Palau to use blockchain to transform economy
Authorities believe that blockchain has the capability to transform the economy of Palau and make it a more desirable nation for lucrative business opportunities. The country hopes to enhance the way citizens perceive and access financial services, much like El Salvador. However, the nation is not up for the adoption of any cryptocurrency or Ripple as a legal tender. However, the country will integrate efficient and seamless cross-border remittances.With this partnership, Ripple continues to work on its goal of "creating powerful gains in financial efficiency, equity, and inclusion."
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