Ripple is a digital payments network that has partnered up with Republic of Palau for the development of its own digital currency. It is determined to be the leader in global payments. It is doing so despite some issues in the U.S.
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El Salvador doesn’t have a central bank or fiat currency, so the country has no national currency. The U.S. dollar is instead the country’s legal currency. Ripple’s partnership will concentrate on the development of a USD-backed, digital currency that is closer to a stabilizecoin (CBDC) than a central bank digital money. It would facilitate national cross-border payment.
Ripple Creates First Ever Government-Backed National Stablecoin
A Tuesday AnnouncementRipple will be the partner and focus of this partnership on cross-border payment strategies. The implementation of this plan means that Palau would have the world’s first government-backed national stablecoin.
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Ripple’s experience with global payment systems will allow it to launch the national stablecoin within the first half 2022. Palau will also receive technical, business and design support.
Palau’s President Surangel Whipps Jr. expressed pleasure about the partnership with Ripple to advance financial innovation and technology in the country. He also acknowledges the potential of blockchain technology in transforming the country’s economy.
“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.”
Palau decided to establish its digital currency. XRP Ledger (XRPL) as an alternative to central bank digital currencies (CBDCs). Additional advantages include being carbon neutral and 120,000x less energy efficient than proof-of work blockchains. The XRPL also offers other advantages such as scalability and speed.
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“We are excited to be working with Palau to achieve its financial and climate-related goals,” said James Wallis, VP of Central Bank Engagements at Ripple. “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.”
This partnership is ideal, given both parties’ concerns for climate and the environment.
Ripple’s Carbon Net-Zero Goal
In 2017, the top-rated provider of enterprise Blockchain solutions for payments was committed to carbon neutrality by 2030.
Ripple created EW Zero in response to this need. This tool is designed to promote sustainability within the blockchain industry. The XRP Ledger Foundation became the first user of this tool.
Two months ago, the company also joined forces with Bhutan to create its CBDC.
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