The Pacific island nation of Palau has partnered with San Francisco-based blockchain funds firm Ripple on a U.S. dollar-backed digital foreign money for the nation — the world’s first government-based nationwide stablecoin — utilizing the XRP Ledger, in accordance with a Ripple announcement.
- Ripple will present Palau with technical, enterprise, design and coverage help for Palau’s nationwide stablecoin. “Palau selected Ripple due to its in depth expertise in blockchain and constructing international cost programs, and the XRP Ledger as a result of it’s carbon-neutral and 120,000x extra energy-efficient than proof-of-work blockchains,” mentioned Ripple in its announcement.
- “As a part of our dedication to guide in monetary innovation and applied sciences, we’re delighted to associate with Ripple,” mentioned Surangel S. Whipps Jr., president of Palau. “The primary section of the partnership will concentrate on a cross-border funds technique and exploring choices to create a nationwide digital foreign money, offering the residents of Palau with higher monetary entry.”
- A U.S. dollar-backed stablecoin and associated use instances — similar to a company registry — on the XRP Ledger may very well be an alternative choice to central bank digital currencies (CBDCs), Ripple mentioned.
- Palau, a bunch of over 300 islands within the Micronesia area of the western Pacific Ocean, is famend for its stunning island surroundings. The nation has a inhabitants of twenty-two,000 and GDP of US$268 million, in accordance with World Bank data.
- Ripple’s newest partnership with Palau comes amid its authorized troubles in the US the place it’s deeply embroiled in a lawsuit with the U.S. Securities and Change Fee over an alleged unregistered securities providing of XRP price over US$1.38 billion. Following the lawsuit, which noticed U.S.-based cryptocurrency exchanges and companions similar to MoneyGram suspend XRP trading and cease their partnerships, the corporate has expanded its enterprise for the XRP Ledger know-how not simply exterior the U.S. but additionally past digital payments and remittances to central bank digital currencies (CBDCs) together with with Bhutan, tokenization, decentralized finance (DeFi) and NFTs.
- XRP, the native token of the XRP Ledger, is at present ranked the seventh-largest cryptocurrency with a market worth of US$49 billion, in accordance with CoinGecko data.
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