Republic Of Palau Partners With Ripple To Create Digital Currency

The Republic of Palau partnered with Ripple to create a digital currency as the best partner to work on a government-backed project so let’s find out more in our latest Ripple news.

Despite the many regulatory issues Ripple faces, it didn’t give up on its mission to become the most important player in the global payments industry and even though things are not great for the platform, the Republic of Palau still chose Ripple as the best option to develop a domestic currency based on the dollar.

According to a press release shared today, Palau chose the XRP Ledger to create digital dollars and to circulate internally in the country. The idea is to design a USD-backed stablecoin which will be developed alongside other services such as corporate registries. Palau doesn’t have a fiat currency on its own and much like El Salvador, the citizens use the US Dollar as legal tender. However, the island nation located in Oceania doesn’t want to adopt XRP or any other cryptocurrency as legal tender but really hopes to issue a government-managed version of the US dollar in a digital form. Palau’s inititive looks like the issuance of a stablecoin and make a lot more sense given that Palau doesn’t have a central bank.

Palau’s president Surangel S. Whipps Jr, was certain that Ripple could provide the technology that is necessary to develop a financial product that will suit Palau’s needs. As a part of the commitment to lead in the financial innovation sector, the nation is proud 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.”

Ripple maintains an efficient and carbon-neutral blockchain network with a note sharing that explains that the XRP ledger will give Palau the ability to settle these transactions in less than 5 seconds at a cost that doesn’t reach a penny on the dollar. The news did nothing for the price of XRP as the native cryptocurrency of the Ripple ledger. XRP did correct by 34 percent in a matter of a few weeks and fell from the $1.4 mark to the low of $0.86. it was unable to break the $1.2 resistance as well but then during November, it did record a 2.97% rise from $1.03 to $0.6. its current price of $1.045 shows a drop of about 2%.