The Republic of Palau adopted the stablecoin project, which runs on the XRP Ledger, following a successful pilot involving 200 Palauns.
The Republic of Palau, an island nation on the Oceanian continent, is now running its native stablecoin project on the public XRP Ledger (XRPL), leveraging XRP for fast and secure payments. The implementation of the project comes on the back of a successful pilot program.
The feat was highlighted by Ripple in its 2023 Value Report. The report reveals that the stablecoin project is now live following a successful pilot which involved up to 200 citizens of Palau. Eri, an XRP community influencer, further drew public attention to the development.
"Palau built their stablecoin on the private version of the XRP Ledger….using its native digital asset #XRP…"
Source: Ripple 2023 Value Report pic.twitter.com/SfjxF0q9e8
— 🌸Crypto Eri 220k+ Followers (Beware of Imposters) (@sentosumosaba) May 25, 2023
The pilot program assessed the viability and user-friendliness of digital currency for local transactions and payments. With the stablecoin now live, Palauan residents can now use their mobile devices to buy goods from participating stores or engage in local transactions using the currency. This innovative method is faster, more cost-effective, and offers enhanced security compared to traditional approaches.
The project emerged through a strategic collaboration between Palau and Ripple, with Ripple offering comprehensive assistance in multiple domains, including business, policy, and design. Additionally, the Silicon Valley company provided Palau with technical support, enabling the development of the stablecoin on the XRP Ledger infrastructure.
While the value report states that the stablecoin runs on a private version of the XRPL, Antony Welfare, Ripple’s CBDC Strategic Advisor, clarified that the stablecoin is, in reality, built on the public XRP Ledger. Welfare acknowledged an error in the report and assured that the team is actively rectifying the mistake.
Just wanted to reshare this message from @nbougalis and confirm the @Ripple team are correcting the report – thanks for highlighting for us 👌@sentosumosaba – The Palau USD stablecoin is on the Public XRP ledger 👍 https://t.co/EAZ3vcmisx
— Antony Welfare (@AntonyWelfare) May 25, 2023
Reports about the stablecoin project emerged last December when President Surangel Whipps Jr. of Palau confirmed to Bloomberg that the nation was collaborating with Ripple to explore the potential of establishing a national stablecoin backed by the US dollar. President Whipps emphasized that creating a national stablecoin would represent a progressive move for Palau’s CBDC initiatives.
Notably, the partnership between Ripple and Palau originated two years back, as highlighted by The Crypto Basic. In November 2021, Ripple formally announced its collaboration with the Oceanian nation, with the objective of assisting in the development of a “USD-backed digital currency.”
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