Ripple May Be Building A Stablecoin For Republic Of Palau

By Kevin • December 26, 2022 2:27 pm • Comments

According to reports from online sources, there are indicators that there may be a chance that the government of the Republic Of Palau may be working with Ripple Labs on a new project.

There are no details that are confirmed yet, but the sources indicate that this project may involve the building of a new stable coin for the country to potentially use.

Ripple being involved in stable coin projects is nothing new as Ripple has already positioned itself to be the leading platform for providing stable coin services.

Trending: Ripple Spells Out Penalty Terms To SEC

Additionally, industry experts predict that the use of stable coins will be widespread around the world within a decade and will have a tremendous amount of growth in the years to come.

With Ripple now being ahead of the competition in a potentially lucrative industry, it seems that there is a lot of upside for Ripple’s ecosystem and its native token XRP.

U.today shares the details:

An anonymous crypto expert under the name @Wkahneman on Twitter, who often posts various news about Ripple and XRP, has taken to Twitter to share that Ripple is likely building a national stablecoin for the Republic of Palau — an island country in the Western Pacific region.

The expert published a screenshot with a quote from the president of the country, Surangel S. Whipps Jr., who stated that the country’s IT teams are working with Ripple Labs giant to building a “national stablecoin” for the country.

The president stated that he hopes this stablecoin, built together with Ripple, will allow the country to make local payments easily and securely.

This is not the first time that Ripple has worked on stable coin projects with a government as the company has recently developed multiple stable coins on the XRP ledger already.

In addition, Ripple has played an important role acting as an advisor and consultant for the EU region when it comes to stable coin development.

The current status of the new stable coin that is rumored to be in development is still unknown, but it is clear that the stable coin has not yet launched.

Therefore, it may still be in the trial or testing stages and just waiting to be released once it is ready.

Back in the US, the Federal Reserve has also explored the use of creating a CBDC for the US dollar.

However, critics have been concerned about the loss of privacy due to the CBDC having the potential to be tracked by the government which erases a lot of the privacy benefits of using the blockchain.

FinBold concludes:

Asked by Ossinger if he believes that the Central Bank Digital Currency (CBDC) efforts would be symbiotic with the private or decentralized crypto ecosystem or possibly compete with each other, he stated that:

“We think that they’re symbiotic and they can complement each other. In fact, CBDCs is an idea that really has come out of cryptocurrencies and blockchain technology.

Palau itself, we don’t have a Central Bank that’s established, we use USD as an official currency. In developing our collaboration with Ripple, our goal is to have a USD-backed stablecoin, which is really a step toward our own CBDC, you could say.

As a reminder, thanks to the cooperation with Binance, Palau back in January introduced its Root Name System (RNS) Digital Residency program, which foresees issuing ID cards to digital residents in the form of non-fungible tokens (NFTs) on the BNB Chain.

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