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Palau partners Ripple on national stablecoin on XRP Ledger

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The Pacific island nation of Palau has partnered with San Francisco-based blockchain payments firm Ripple on the country’s US dollar-backed digital currency – the world’s first national government stablecoin – using XRP Ledger, according to a Ripple announcement.

quick Facts

  • Ripple will provide Palau with technical, commercial, design and political support for Palau’s national stablecoin. “Palau chose Ripple due to its extensive experience in blockchain and building global payment systems, and XRP Ledger because it is carbon neutral and 120,000 times more energy efficient than Proof of Work blockchain,” Ripple said in its announcement.
  • Surangel S. said: Webs Jr., President of Palau: “As part of our commitment to driving innovation and financial technology, we are pleased to partner with Ripple.” “The first phase of the partnership will focus on a cross-border payments strategy and explore options for creating a national digital currency, providing Palau citizens with greater financial access.”
  • Ripple said that the US dollar-backed stablecoin and related use cases – such as the company’s ledger – in the XRP Ledger could serve as an alternative to central bank digital currencies (CBDCs).
  • Palau, a group of more than 300 islands in the western Pacific region of Micronesia, is known for its stunning island views. The country has a population of 22,000 and a gross domestic product of US$268 million, according to data from the World Bank.
  • Ripple’s recent partnership with Palau comes amid its legal troubles in the United States as it has been deeply involved in a lawsuit with the US Securities and Exchange Commission over an alleged unregistered securities offering of XRP worth over $1.38 billion USD. Following the lawsuit, which saw US crypto exchanges and partners like MoneyGram suspend XRP trading and stop their partnerships, the company expanded its XRP Ledger technology business not only outside the US but also beyond digital payments and transfers to central bank cryptocurrencies (CBDCs) including With Bhutan, crypto, decentralized finance (DeFi) and NFTs.
  • XRP, the original token of the XRP Ledger, is ranked as the seventh largest cryptocurrency with a market capitalization of $49 billion, according to CoinGecko data.

See related article: Ripple launches ‘game-changing’ liquidity center amid legal battle with XRP with SEC

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