World’s first government-backed national ‘StableCoin’ exchange could come up in the island-nation of Republic of Palau: Dollar-backed Ripple XRP cryptocurrency backend for Blockchain

Ripple Republic of Palau Digital US Dollar-Backed Cryptocurrency Blockchain
Blockchain matters, not cryptocurrency? Pic credit: Marco Verch/Flickr

XRP cryptocurrency, better known as Ripple, is collaborating with the island nation of the Republic of Palau. The country’s national digital currency strategy is under active development, with Ripple offering the critical Blockchain for the US Dollar-backed cryptocurrency.

The Republic of Palau could leap into the world of cryptocurrencies but through a legal, official, and fiat currency. Ripple, a platform that relies on Blockchain and offers the benefits of cryptocurrencies, is helping the nation deploy its digital currency.

World’s first government-backed national “StableCoin” could be actively circulated in the Republic of Palau:

Cryptocurrencies are a rage. Digital tokens such as Bitcoin, Ethereum, Doge Coin, are gradually finding their receiving legitimacy. However, there are several challenges, including the excessive carbon footprint, that are limiting the adoption of Decentralized Finance (DeFi).

Small countries such as El Salvador recently started recognizing and accepting Bitcoin as a method of payment for its citizens. Now the Republic of Palau has also shown its interest in adopting cryptocurrency for everyday transactions.

Ripple has announced that it’s working with the Republic of Palau. The company behind the XRP cryptocurrency will reportedly help outline the nation’s national digital currency strategy.

In the initial stages, Ripple will help the nation streamline cross-border payments. At the core will be the US Dollar. The President of the Republic of Palau, Surangel S. Whipps, Jr., said:

“As part of our commitment to lead in financial innovation and technologies, we are delighted 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.”

Why did Palau choose Ripple and not an already-established digital token like Bitcoin?

It is interesting to note that the Republic of Palau is not adopting any cryptocurrency. In fact, Ripple doesn’t strictly offer a cryptocurrency like Bitcoin.

Ripple operates on an open-source and peer-to-peer decentralized platform. It allows transfer of money in any form, whether it’s dollars, yen, euros, or cryptocurrencies.

Ripple is a global payments network. The XRP Cryptocurrency is merely a facilitating digital token that helps quick conversion between different currencies.

The XRP usually finds itself in the same league as other cryptocurrencies. However, this is not correct. The XRP merely relies on the Blockchain component, which offers decentralized ledgers to ensure authenticity of transactions while promoting privacy and security.

Ripple will provide technical, business, design, and policy support to the Republic of Palau. Essentially, the platform could help the nation deploy a fiat currency such as the Dollar through its Blockchain-based platform.

Ripple claims that its ledger is carbon-neutral and 120,000 times more energy-efficient than other cryptocurrencies such as Bitcoin. The company also assures that its ledger is scalable, fast, and has low fees. Needless to mention, these are very attractive qualities in a cryptocurrency.

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