The President of Palau, Surangel Whipps Jr., has announced important information about the digitalization of the country and the possible adoption of blockchain.
Ripple says Palau is aware of the potential of financial innovations like blockchain to transform its economy and make the country a highly desirable place to do business. The same technology will transform residents’ access to financial services and enable rapid cross-border transfers.
During the interview, the President of Palau talked about the digitalization of the country and the future improvements that are being pursued. Palau’s national stablecoin will soon be launched in partnership with Ripple and will enable fast and secure digital payments, according to President Whipps Jr. The president expressed optimism that the stablecoin project, developed in partnership with Ripple, will enable the Settlement of local payments for the country easy and safe.
Whipps Jr. also talked about the recent visit from CZ (the CEO of Binance) and talks about using Binance Pay to simplify payments for digital residents in the country. President Whipps said: “We think it’s important and it will make Fiat’s launch easier. Our digital residents will also have access to banking services, and Binance Pay options will also facilitate the offer. We really believe that they do not compete with each other but form a symbiosis and can help each other and strengthen the crypto ecosystem.”
The Republic of Palau does not have a functioning central bank, and the US dollar is recognized throughout the country as the primary medium of exchange. The creation of a USD-backed stablecoin is said to be the result of the efforts of the National Stablecoin Initiative. In his remarks, the president described this as a “step towards our own digital central bank currency”.
It is important to know that some stablecoins have already been set up on XRP Ledger. One such example is Stably, a venture capital-backed fintech company in the United States.
Ripple Central Bank (CBDC) digital currency solution
Since Ripple provided a private version of the XRP ledger in March 2021 and offered central banks a platform to securely create CBDCs, the company has taken a more active role in creating digital currencies from the bank. central. Central banks can leverage Ripple’s XRPL-based private CBDC ledger to manage and issue CBDCs without building a full network from scratch.
In September 2021, Ripple Labs announced that it was working with the Royal Bhutan Monetary Authority to test a CBDC in the South-Central Asian country Bhutan. The CBDC will issue and manage a digital ngultrum to improve cross-border payments.
In February 2022, Ripple also became a supporting partner of the European think tank Digital Euro Association to jointly promote the growth and development of CBDCs and the digital euro.
Also in September 2022, the US Digital Dollar Project announced that it was working with Ripple to launch a pilot program to investigate a US dollar-based CBDC.
Central banks have the ability to meet their own privacy policies and requirements with Ripple’s CBDC solution. For governments, this is crucial in times of crisis. Ripple’s CBDC solution is of course less energy-intensive, more efficient and cheaper than competing ledgers because it is based on the same technology that powers the XRP ledger.
CBDCs would protect a country’s monetary and financial stability by reducing reliance on physical fiat currency, lowering transaction costs, and minimizing settlement risk. In addition, CBDCs can open a channel of direct communication with the local population.