The Republic of Palau island nation has partnered with San Francisco, US-based crypto solutions provider Ripple to explore the creation of its national digital currency. The partnership will first focus on developing avenues for cross-border payments that can be facilitated by this digital currency that will be backed by US dollars, if all goes well. according to plan. As part of the agreement, Ripple will provide technology, business, design, and policy support to Palau. The government of Palau aspires to provide citizens with an alternative to bank currency with expanded access to finance.
Based on notice, if Palau gets a national digital currency, the authorities there will be willing to test its use cases on a decentralized public blockchain called XRP Ledger (XPRL).
Palau is a country of about 340 islands, forming the western chain of the Caroline Islands located in the Pacific Ocean. The country’s economy is affected by remittances – money sent home by foreigners and working abroad.
Such countries, which are dependent on remittances, receive more money from their natives if transactions are carried out using cryptocurrency technology. Are from electronic money Not regulated by any bank, no service fees for cross-border financial transfers.
As a service fee, international remittance platforms reduce remittances by a significant percentage by a percentage point and transfer an amount less than intended.
In early October, a congressman from Tonga, the last Polynesian kingdom in the South Pacific also addressed the subject.
The official, at the time, said that Western Union was cutting their remittances by more than 50%, a setback for another small country. El Salvador resolved by legalization Bitcoin as a legal tender.
Currently, Ripple is looking forward to helping Palau get its own national digital currency.
“We have a great opportunity to combine our technology and experience with Palau’s unique ethos to create economic impact,” said James Wallis, vice president of Central Bank Engagements at Ripple. and real society for the country,” said James Wallis, vice president of Central Bank Engagements at Ripple.
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