Ripple is the leading provider of enterprise blockchain and crypto solutions. It is also the leading force behind bringing cross-border payments across multiple remittance corridors around the globe. In one of its latest projects, the company has joined hands with the island nation of Palau to introduce the USD-backed national stablecoin in the first half of 2022 with the help of the XRP Ledger.
The partnership will leverage the XRP LEDGER to create the world’s first government-issued national stablecoin.
First National Stablecoin Instead of CBDC
For small island nations like Palau, a USD-backed stablecoin would be a viable alternative to central bank digital currencies (CBDCs). Furthermore, having stablecoin-associated use cases like a corporate registry could also play to the country’s benefits. Additionally, strategies for cross-border payments to improve the country’s financial democracy will also be explored in the partnership.
The President of Palau, Surangel S. Whipps Jr. commented on the partnership,
“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.”
Palau Chooses Ripple
As per reports, Ripple’s extensive network of global payment systems and experience in building blockchains made it the number one choice to undertake this mission with Palau. Additionally, the XRP Ledger is 120,000 times more energy-efficient than regular PoW blockchains. With a long history of strong environment conservation, Ripple’s carbon-neutral XRPL is much more suitable for the islands’ blockchain requirements. Finally, XRPL also brings in factors like scalability, speed of transactions, and low costs to the equation, tilting the scales even more in its favor.
According to James Wallis, VP of Central Bank Engagements at Ripple,
“We are excited to be working with Palau to achieve its financial and climate-related goals. We have a wonderful opportunity to bring together our technology and experience with the unique characteristics of Palau to make a real economic and social impact for the country.”
RippleNet In Pakistan
Ripple has effectively partnered up with different central banks and financial institutions to establish cross-border payment services in multiple high-value remittance corridors. Most recently, the Pakistan-UAE corridor had received the RippleNet advantage when the blockchain financial services provider LuLu Exchange tied up with Pakistan’s premier financial institution Bank Alfalah to introduce Ripple’s cross-border payment platform.