Ripple, a prominent San Francisco-based blockchain company, has collaborated with the Republic of Palau to test a U.S. Dollar-backed stablecoin on the XRP Ledger.
This noteworthy project, which has been under development for some time, marks the introduction of the Palau Stablecoin (PSC). The PSC represents a digital currency prototype with the potential to significantly change the transaction methods for goods and services in Palau. The initial phase of the program involves government employees voluntarily using PSC at specified local businesses.
The PSC is designed to provide a "fee-free" secure, transparent, and convenient payment option that aims to be more efficient than other online payment services. As a crucial component of this pilot, the Ripple CBDC Platform will be employed. This platform is an end-to-end solution enabling central banks to issue their own central bank digital currency (CBDC).
The decision to adopt digital currency has been hailed as a transformative move for Palau. President S. Whipps Jr. hopes that the initiative will mobilize the country’s economy and accelerate government processes.
The President has expressed confidence in Ripple’s expertise in CBDCs and blockchain technology as well as the environmentally friendly XRP Ledger. The ripple effect, he suggests, will be a more financially empowered citizenry and a nimble, innovative national economy. The stablecoin project is expected to increase financial inclusion, reduce transaction fees for citizens, and enhance the efficiency of cross-border payments.
The journey toward digital currency is not unique to Palau. Ripple has also been working on a similar stablecoin project with Montenegro. A series of workshops and meetings have been held with representatives of financial service providers, government institutions, the private IT sector, and the academic community in Montenegro.
The objective of the pilot project in Montenegro, according to Antony Welfare of Ripple, is to expand the understanding of digital currency application and its inherent risks, especially its impact on applicable regulations, cybersecurity, and user privacy. Just as it is in Palau, the primary goal in Montenegro is to leverage the possibilities of blockchain technology for the benefit of the citizens and the economy.
As reported by U.Today, the San Francisco-based tech company also partnered with the Royal Monetary Authority of Bhutan to trial a digital Ngultrum using Ripple's CBDC Private Ledger product, aiming to enhance cross-border and wholesale payments.