Ripple set to help this country in developing their Sovereign digital currency

By Palak Malhotra
Published November 24, 2021 Updated November 24, 2021
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Ripple set to help this country in developing their Sovereign digital currency

By Palak Malhotra
Published November 24, 2021 Updated November 24, 2021

Ripple has announced its exclusive partnership with the Island nation, the Republic of Palau to explore the country’s first national digital currency and its use cases facilitated on the XRP Ledger (XRPL). According to Ripple, with the focus on developing strategies for cross-border payments and a USD-backed digital currency for Palau, the country may be the first to implement a government-backed national stablecoin, by the former half of 2022. Furthermore, amid the process of exploring a USD-backed stablecoin and associated use cases like a corporate registry on XRPL, Ripple hopes to source a substitute to CBDCs for nations like Palau.

“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.”, said President Surangel Whipps Jr.

While the addition of technologies like blockchain does make any country, a financially proficient choice, but the Republic of Palau also has concerns surrounding the unsustainable nature of blockchain. Ripple noted that XRPL is carbon-neutral and 120,000x more energy-efficient as compared to proof-of-work blockchains, further escalating the financial growth of Palau, with costing the environment.

“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.” said James Wallis, VP of Central Bank Engagements at Ripple.

Why is Ripple Expanding Business Outside the US?

Ripple already had the majority of its business outside the US, however, now the company is extensively expanding in other nations given the speculations about the final verdict being against Ripple in the ongoing XRP lawsuit.  According to recent updates, the case seems to be slipping away from Ripple and heading towards a settlement in the SEC’s favor. Especially, since the court granted SEC’s motion to compel the discovery of Ripple’s internal meeting recordings earlier this month.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Palak Malhotra
417 Articles
Journalism & Mass Comm. ‘21 graduate, Palak is a GenZ journalist with background in Lifestyle journalism & PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0

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