San Francisco-based software company Ripple is partnering with the Republic of Palau to develop a government-backed stablecoin and ease cross-border money transfers.
Ripple says that the partnership with the western Pacific country will focus on “developing strategies for cross-border payments and a USD-backed digital currency for Palau” on the XRP Ledger (XRPL).
Republic of Palau’s President Surangel Whipps Jr. says that the western Pacific country’s partnership with Ripple will enhance financial access for citizens.
“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 payments firm says that the government-backed national stablecoin could be implemented in the first six months of 2022. According to Ripple, the Republic of Palau-backed stablecoin could be a “viable alternative to central bank digital currencies (CBDCs)”.
Ripple says the Republic of Palau chose the XRP Ledger due to its efficiency and environmental friendliness.
“As an established leader in the global climate debate, 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.”
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