Some countries are looking to jump on the crypto caravan and consider creating national stablecoins, despite occasional setbacks such as bankruptcies and arrests among some of their prominent players before.
That country is working with Ripple to create a ‘national stablecoin’!
One of the governments following this effort is the Republic of Palau, whose president, Surangel S. Whipps Jr., stated that the country’s IT team is actively working with blockchain company Ripple Labs and is exploring the possibility of launching a “national stablecoin.” As he told Bloomberg’s Joanna Ossinger in September.
Palau’s digital asset strategy
The head of the archipelago of more than 500 islands, part of the Micronesia region in the western Pacific Ocean, explained that while discussing Palau’s digital asset strategy, such a small country needs to diversify its economy, looking for ways to do so. One example of these efforts is more innovative and “take advantage of new technologies” in reference to the enactment of the Digital Residence Act.
As the president added:
“Palau is also taking a step forward to collaborate with Ripple to explore the creation of the national stablecoin we hope to launch soon, which will help make payments easy and secure.”
In addition, Whipps Jr., Binance CEO Changpeng Zhao, who visited Palau and discussed possible collaboration in the digital residency program, said: “In addition to using Binance Pay to make digital payments for digital residents, it is also to participate in Local commerce.”
On top of that, the head of Palau highlighted that he had a virtual meeting with Ethereum (ETH) co-founder Vitalik Buterin and discussed the option of opening the R&S ID ecosystem to the developer community and said, “See how Palau’s digital residence is.
Symbiosis with the rest of the cryptos
When asked by Ossinger whether he believes Central Bank Digital Currency (CBDC) efforts will be symbiotic with, or possibly competitive with, the private or decentralized crypto ecosystem, he said:
We think they are symbiotic and can complement each other. In fact, CBDCs are really an idea that came out of cryptocurrencies and blockchain technology. Palau itself, we don’t have an established Central Bank, we use USD as official currency. As we develop our collaboration with Ripple, our goal is to have a USD-backed stablecoin that is truly a step towards our own CBDC.
As a reminder, Palau, through its collaboration with Binance, introduced the Root Name System (RNS) Digital Residency program in January, which envisions digital residents to be issued ID cards in the form of non-nuclear tokens (NFTs) on the BNB Chain.
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