Palau and Ripple Pilot Government-backed Stablecoin
(27 July 2023 - Palau) Western Pacific island state the Republic of Palau has teamed up with Ripple on a government-issued stablecoin pilot.
Palau first began working with Ripple on the stablecoin in 2021, hoping to have the project up and running in the first half of 2022.
It is now ready for the first phase of a pilot program, involving around 200 government employees and local merchants.
The US-backed Palau Stablecoin will be issued on Ripple's carbon neutral blockchain, XRP Ledger.
Palau will also tap the Ripple CBDC platform, enabling the island to holistically manage and customise the entire lifecycle of the stablecoin, including distribution and transactions.
The Ministry of Finance will oversee the system and trigger the issuance and redemption of stablecoin units, while always guaranteeing the 1:1 reserve.
Ripple says the stablecoin will bring greater financial inclusion and lower overall transaction fees for citizens, while cutting FX costs and speeding speeding up payments.
"By digitising our currency, we hope to mobilise our economy and government processes to improve financial transactions and empower our citizens." says President of the Republic of Palau Surangel Whipps Jr.