Ripple teams up with the Republic of Palau to work on a new coin

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Nov 24, 2021
  • Ripple joins forces with Palau’s government to create a new cryptocurrency for the country to use.
  • Palau wants to create a stablecoin backed by the USD, and it chose Ripple to provide the technology.
  • Palau sees the potential of digital money, but it is not interested in adopting an actual crypto.

Ripple has seen its fair share of troubles over the course of the last 12 months, after the SEC’s lawsuit against the company and its leaders. However, the firm managed to cut its losses, find new opportunities, and land on its feet. In fact, it just entered a new partnership with The Republic of Plau in order to help with its exploration of digital money.

Of course, Palau is not under US rule, which allows it to join forces and work even with companies like Ripple, whose reputation is being questioned in the US.

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Ripple shared the details of the deal, stating first that Palau decided to use XRP Ledger to create digital dollars that would circulate within the country. The company and the country came to the idea of creating USD-backed stablecoins, and then develop other services around it.

Palau wants digital money, just not a real cryptocurrency

The two will use the US dollars because, much like El Salvador, Palau also doesn’t have its own currency. Instead, it relies on the US dollar which serves as legal tender. However, unlike El Salvador, the small Oceania-based island is not interested in adopting a traditional cryptocurrency — not Bitcoin, nor XRP, nor any other alternative.

Instead, it wants a government-managed digital version of the USD. However, this will not be a CBDC such as the ones that are being developed by the likes of China, India, and many other countries. After all, the small country does not have a central bank, so there is no authority qualified to develop a CBDC.

Instead, they turned to Ripple to provide the technology and develop the token that the country would end up using. This also makes sense, given that Ripple’s network is efficient, fast, cheap, and carbon-neutral, making it a perfect solution for Palau’s problem.

Ripple does have a history rich with controversy, but in Asia, Oceania, and many other regions — many regulators have confirmed that they do not view XRP as a security, which puts Ripple in a much better position in those parts of the world than in its home country.

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