The President of Palau, Surangel Whipps Jr. revealed important information regarding the nation’s digitalization and potential adoption of blockchain.
Ripple says that Palau is aware of the potential of financial innovations, such as blockchain, to alter its economy and establish the nation as a very desirable place to do business. The same technology will change how its residents access financial services and make it possible for cross-border remittances to be sent quickly.
During the interview, the President of Palau discussed the nation’s digitalization and the future improvements they are aiming to integrate. The national stablecoin of Palau will launch soon in collaboration with Ripple, enabling quick and safe digital payments, according to President Whipps Jr. The President expressed his optimism that the stablecoin project created in partnership with Ripple will make it simple and safe for the nation to conduct local payments.
Whipps Jr. also discussed CZ’s (the CEO of Binance) latest visit to the nation and their discussions about how to use Binance Pay to simplify payments for the nation’s digital residents. President Whipps said: “We feel that this is important and it will help make Fiat on ramping easier. Our digital residents will also have banking access and through Binance Pay options will make offering easier too. We really believe that they don’t compete but they actually are symbiotic and they can help each other and strengthen the crypto ecosystem.”
The Republic of Palau does not have a functioning Central Bank, and the United States dollar is acknowledged across the country as the primary means of exchange. The creation of a USD-backed stablecoin is intended to be the result of the efforts of the national stablecoin initiative. The president referred to this as a “move toward our own Central Bank Digital Currency” in his remarks.
It is important to note that according to reports, some stablecoins have already been established on XRP Ledger. One such example is Stably, a FinTech business in the United States that is supported by venture money.
Ripple Central Bank Digital Currency (CBDC) Solution
Since deploying a private version of the XRP Ledger in March 2021 and offering central banks a platform to safely create CBDCs, the company has taken a more active role in the creation of Central Bank Digital Currencies. Central banks can use Ripple’s CBDC Private Ledger based on XRPL to manage and issue CBDCs, without building an entire network from scratch.
In September 2021, Ripple Labs announced that it was collaborating with the Royal Monetary Authority of Bhutan to test a CBDC in the nation of Bhutan in south-central Asia. The CBDC will issue and administer a digital Ngultrum with the goal of enhancing cross-border payments.
Ripple also became a supporting partner of the European think tank Digital Euro Association in February 2022 in order to promote the growth and development of CBDCs and the Digital Euro together.
In September 2022, the U.S. Digital Dollar Project has also recently announced it is working with Ripple to launch a pilot program to study a U.S. dollar-based CBDC.
Final thoughts
Central banks have the option to tailor their own policy and privacy needs using Ripple’s CBDC solution. For governments, this is crucial during a crisis. Ripple’s CBDC solution is naturally less energy-intensive, more effective, and less expensive than competing ledgers since it is built on the same technology that drives the XRP Ledger.
CBDCs would effectively be protecting a nation’s monetary and financial stability by reducing reliance on physical fiat, lowering transaction costs, and minimizing settlement risk. Additionally, CBDCs can open up a channel for direct communication with local residents.
Rickie Sanchez is an article writer specializing in cryptocurrency news. Since late 2017, he has been actively investing in cryptocurrencies. He is enthusiastic about everything that has to do with crypto and he hopes that the readers of his articles in the years to come will gain a massive understanding of blockchain technology.
