According to Ripple, the collaboration with the Republic of Palau “may see the introduction of the world’s first government-backed national stablecoin.
The digital payment network Ripple has teamed with the Republic of Palau to assist in the development of the Pacific island nation’s own digital currency.
The partnership’s initial focus will be on the creation of a digital currency backed by the US dollar to improve the country’s cross-border payments.
According to Ripple’s release, the collaboration “may see the introduction of the world’s first government-backed national stablecoin in the first half of 2022.”
The national digital currency, according to Ripple, may not be just another central bank digital currency (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.”
The national digital currency, according to Palauan President Surangel Whipps Jr., will “give the residents of Palau with more financial access.”
Palau’s vulnerability to some of the effects of climate change as an island nation is one of the reasons it was chosen for the job, according to Ripple.
The XRP Ledger is “carbon-neutral and 120,000X more energy-efficient than Proof-of-Work blockchains,” according to the company.
“We’re pleased to be working with Palau to help them reach their financial and climate goals,” said James Wallis, Ripple’s vice president of central bank engagements.
“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.”
Ripple is no stranger to environmental and climatic concerns. It stated its objective of becoming carbon net-zero by 2030 in February of this year, beginning with making XRP carbon net-zero via the EW Zero tool.
Energy Web’s EW Zero is an open-source system that enables enterprises to purchase tokenized renewables in order to become carbon net-neutral.
Ripple also led a $44 million fundraising round for Nelnet Renewable Energy, a fintech company that helps support environmentally aware activities around the US.
Ripple has been working hard to resolve its dispute with the Securities and Exchange Commission about whether XRP tokens were issued as unregistered security in 2013.
Brad Garlinghouse recently stated that he believes the case is doing well and that it will be completed in 2022.
The price of XRP is currently around $1.05. This is up 0.42 percent this week, but it’s still down 5.47 percent for the month.