The Republic of Palau and Ripple, a well-known blockchain startup with headquarters in San Francisco, worked together to test an XRP Ledger stablecoin backed by U.S. dollars.
The Palau Stablecoin (PSC), a significant project that has been in the works for some time, is now available. The PSC is a digital currency prototype that has the potential to fundamentally alter how goods and services are transacted in Palau. Government personnel that volunteer to participate in the programme do so at certain nearby companies.
The PSC seeks to be more effective than existing online payment systems by offering a “fee-free” safe, open, and easy payment solution. The use of the Ripple CBDC Platform will be an essential part of this test. With the use of this platform, central banks can create their own central bank digital currency (CBDC).
Digital currency adoption has been lauded as a game-changing choice for Palau. The programme, according to President S. Whipps Jr., aims to energise the national economy and quicken administrative procedures.
The XRP Ledger’s commitment to sustainability and Ripple’s knowledge of blockchain technology and CBDCs have earned the President’s trust. The result, according to him, will be a more financially independent populace and a dynamic, creative national economy. The stablecoin project aims to broaden financial access, lower transaction costs for users, and improve the effectiveness of international transfers.
The transition to digital currency is not just happening in Palau. Along with Montenegro, Ripple has been collaborating on a similar stablecoin initiative. The Montenegrin academic community, private IT companies, government agencies, and financial service providers have all been invited to a number of seminars and meetings.
According to Antony Welfare of Ripple, the goal of the pilot project in Montenegro is to increase awareness of the usage of digital currency and its inherent hazards, particularly their influence on relevant laws, cybersecurity, and user privacy. The main objective in Montenegro, like in Palau, is to take use of blockchain technology’s potential for the country’s people and economy.
In order to improve cross-border and wholesale payments, the San Francisco-based tech startup has collaborated with the Royal Monetary Authority of Bhutan to test a digital Ngultrum utilising Ripple’s CBDC Private Ledger platform.
