Ripple and the Republic of Palau have announced their partnership exploring the country’s digital currency idea and using it with the XRP Prediction ledger.
The initial focus of the partnership will be on establishing a payment mechanism between cross-border and digital currency backed by USD for Palau. By the initial month of 2022, government-regulated national stablecoin might be launched, with Ripple providing technical, commercial, and policy support. Developing a stablecoin that is backed by USD and related use cases at the XRP Ledger, such as business registration, might be a viable option for central bank digital currencies (CBDCs) for nations like Palau.
President Surangel Whipps Jr said that this partnership is a part of their commitment towards innovation in finance and technologies. The initial phase of this partnership will have a complete focus on the cross-broader strategy of payment.
Palau recognizes the value of innovation in finance, such as Blockchain, altering the country’s economy as a very desirable place to do business. The technology will transform the way citizens will have access to financial services making cross-border transfers more efficient.
Palau picked Ripple as it got good expertise in Blockchain and the development of global payment systems, as well as the XRP prediction ledger since it is carbon-neutral and has the energy of 120,000x than proof-of-work blockchains. The XRPL has a number of advantages, including speed, scalability, and cheap cost.
Financial organizations and government agencies, including Palau, may use the XRP Ledger to completely settle all transactions in cent within 3-5 seconds. There are around 5,400 currencies created and traded at the platform of XRP Ledger, thanks to its built-in decentralized exchange (DEX) and also the custom token capabilities, making it easy to design, issue, and manage assets, like stablecoin.