Ripple, the digital payment network, has partnered with the Republic of Palau to help the Pacific island nation develop its own digital currency.
The initial focus of the partnership will see the development of a USD-backed digital currency to help facilitate cross-border payments for the nation. The collaboration “could see the implementation of the world’s first government-backed national stablecoin in the first half of 2022” according to Ripple’s announcement.
Ripple suggested the national digital currency may not necessarily be just another CBDC.
“Ripple would provide Palau with technical, business, design and policy support. Meanwhile, exploring a USD-backed stablecoin and associated use cases —such as a corporate registry— on the XRP Ledger could provide a viable alternative to central bank digital currencies (CBDCs) for countries like Palau”.
Palau President Suangel