Following the revelation that Ripple’s blockchain was collaborating with the island government of Palau on a stablecoin project, the value of Ripple’s XRP rose by almost 6% in the week before December 27.
During a symposium on cryptocurrencies held in Singapore, the president of a nation in the Western Pacific, Surangel Whipps Jr., said that his nation was interested in many crypto projects, including a government-issued stablecoin in partnership with Ripple.
To simplify and safeguard monetary transactions, “Palau is also taking a step in cooperating with Ripple to investigate the construction of national stablecoin,” which we expect to introduce shortly. Whipps stated that Palau was also in discussions with Binance to establish a “digital residency nation inside the country.”
In November 2023, Ripple published a white paper on the significance of stablecoins. The business anticipates that institutional investors will continue to use cross-chain capacity. Moreover, the design of the new stablecoin will supposedly be eco-friendly.
The blockchain said on its website that “Ripple is collaborating with the Republic of Palau to investigate the possibility of a government-backed stablecoin on the public XRP network.” The inherent eco-friendliness of the ledger is crucial for a nationally recognized for its leadership on climate concerns.”
The President of the Archipelago of more than 500 islands noted that, as a tiny nation, it was necessary to seek methods to expand its economy, such as through using modern technology. One consists of a Digital Residency Act, which is promoted as perfect for facilitating simple and secure payments.
Palau is also counting on Ethereum co-founder Vitalik Buterin’s backing for the possibility of extending the R&S ID ecosystem to the developer community. Whipps suggested that a private or decentralized crypto environment and CBDC might be mutually beneficial. In strengthening our partnership with Ripple, we want to create a USD-backed stablecoin, which may be considered a step toward our own CBDC.