Some countries are planning to go with the flow as the usage of digital assets grows across multiple mainstreams. As a result, most governments throughout the world are focusing on building a national digital currency that can be linked to their fiat currencies. This is the fundamental reason for the Republic of Palau's partnership with Ripple's digital payment network.
Ripple will help the Pacific Island country build its national digital currency as part of the cooperation. The start-up ensures that the digital money is USD-backed and may be used to make cross-border payments in Palau.
In addition, Ripple revealed that the agreement would result in the creation of a national stablecoin in the first half of next year. This will be the first of its sort in the world with government support.
Ripple has hinted that Palau's national digital currency might not be a Central Bank Digital Currency (CBDC). According to the digital payment network, its support for Palau spans design, business, policy, and technology.
It discussed the implications of investigating a USD-backed stablecoin and its applications on the XRP Ledger. It was stated that such an application would be a better alternative to CBDCs for a country like Palau.
President Suangel Whipps Jr. of Palau affirmed that the national digital currency provides citizens with more financial access.
Ripple's Commitment to Climatic Considerations
Furthermore, as an island, Palau is vulnerable to climatic change. Another reason for the relationship with Ripple is because of this. XRP Ledger, according to the network, is carbon-neutral and saves 120,000 times more energy than Proof-of-Work blockchains.
James Wallis, Ripple's VP of Central Bank Engagements, expressed his enthusiasm for the engagement with Palau in dealing with both financial and climatic challenges. He claims that it allows them to showcase their expertise and technology while taking advantage of Palau's distinctive features. As a result, they will have a significant impact on the country's economic and social elements.
Ripple's role in environmental and climatic factors is far more complex than that of a newcomer. In February of this year, the network declared its goal of becoming carbon-neutral by 2030. The approach entails converting XRP carbon net-zero using the EW Zero tool. EW Zero, as an Energy Wen open source solution, will allow developers to purchase tokenized renewables, allowing them to become carbon net-neutral.
In addition, Ripple piloted a $44 million fundraising project for Nelnet Renewable Energy, a fintech company. This effort aimed to raise funds for environmentally concerned campaigns in the United States.
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