The Republic of Palau, an archipelago made up of around 500 small islands, is working with Ripple to build the country’s digital currency.
Ripple partners with the Republic of Palau
According to a recent press release from one of the leading payment service providers Ripple, the oceanic country officially known as the Republic of Palau has teamed up with the company for their assistance in developing a USD-backed digital currency. The republic does not have its own fiat currency and relies largely on the USD. The republic has made it clear that it is not using XRP or any cryptocurrency as legal tender, but is envisioning the development of the country’s USD-backed digital currency.
Surangel S. Whipps Jr, President of the Republic, said Ripple had skills that could systemically serve the financial aspects of the country.
While noting as part of their commitment to technology and innovation that they are excited to partner with Ripple, he added that the first phase of the project will focus on the cross-border payment strategy as they will investigate “Opportunities to create a national digital currency that will give Palau citizens better financial access.”
Ripple stated that they have sustainable and fast blockchain technology that the company will use to enable Republic to conduct cross-border transactions within five seconds.
Ripple’s regulatory battle
Despite their ongoing battle with the US securities regulator, Ripple doesn’t seem to have any more worries. The SEC filed a lawsuit in December 2020 accusing the company of selling $ 1.38 billion in XRP tokens as securities. In the early stages of the process, Ripple suffered badly as many exchanges delisted XRP, causing the token to depreciate rapidly. But now that we have almost a year ahead of us, things seem to have changed as Ripple continues its advances in almost every sector they have focused their attention on.