Palau teams up with Ripple on environment-friendly national digital currency

The digital payment network Ripple has formed a partnership with the Republic of Palau to assist in the development of the Pacific island nation’s own digital currency.

The partnership’s initial focus will be on the creation of a USD-backed digital currency to aid the country’s cross-border payments. 

XRP Ledger, better than proof of work

According to Ripple’s release, the collaboration “may see the introduction of the world’s first government-backed national stablecoin in the first half of 2022.”

Ripple speculated that the national digital currency might not be another CBDC. Ripple said it would give technical, business, design, and policy assistance to Palau.

Meanwhile, for countries like Palau, researching a USD-backed stablecoin and accompanying use cases on the XRP Ledger — such as a corporate registration — could give a viable alternative to central bank digital currencies.

The national digital currency, according to Palau President Suangel Whipps Jr., will “give the residents of Palau more financial access.”

Palau’s vulnerability to some of the effects of climate change as an island nation is one of the reasons it was chosen for the job, according to Ripple. 

The XRP Ledger is “carbon-neutral and 120,000 times more energy-efficient than Proof-of-Work blockchains,” the company said.

Ripple’s objectives

“We’re pleased to be partnering with Palau to help them reach their financial and climate goals,” said James Wallis, Ripple’s vice president of Central Bank Engagements.

“We have a fantastic potential to combine our technology and knowledge with Palau’s unique traits to have a significant economic and social effect,” Wallis said.

Ripple is no stranger to environmental and climatic concerns. It stated its objective of becoming carbon net-zero by 2030 in February of this year, beginning with making XRP carbon net-zero via the EW Zero tool.

Energy Web’s EW Zero is an open source solution that allows businesses to buy tokenized renewables to help them achieve carbon net-zero. 

Ripple also led a $44 million fundraising round for Nelnet Renewable Energy, a fintech company that helps support environmentally conscious activities in the United States.

Ripple has been working hard to settle its case with the Securities and Exchange Commission (SEC) regarding whether XRP tokens were distributed as unregistered securities. 

Brad Garlinghouse recently stated that he believes the case is doing well and that it will be completed next year.

 

Image courtesy of Cointelegraph News/YouTube

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