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HomeCrypto NewsMarketXRPL Now Powers Palau's Native Stablecoin, Utilizing XRP

XRPL Now Powers Palau’s Native Stablecoin, Utilizing XRP


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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.

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.

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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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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