Western Pacific island state the Republic of Palau has engaged with Ripple to to explore using the XRP Ledger to create a government-issued national stablecoin.
The partnership will initially focus on developing strategies for cross-border payments and a USD-backed digital currency for Palau. This could see 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.
Palau president Surangel S. Whipps, Jr. says: “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 XRP Ledger provides financial institutions and government bodies such as Palau the ability to fully settle transactions for fractions of a penny and in just 3-5 seconds. To date, more than 5,400 currencies have been issued and traded on the XRP Ledger via its integrated decentralized exchange (DEX) and custom token functionality that makes it possible to create, issue and manage crypto currencies, including stablecoins.