Ripple has partnered with the Republic of Palau to help the Pacific island nation develop its own digital currency.
The initial focus of the partnership will see the improvement of a United States dollar-backed digital currency to help facilitate cross-border payments for the nation. The partnership could see the implementation of the world’s first government-backed national stablecoin in the first half of 2022.
Ripple suggested the national digital currency may not necessarily be just another central bank digital currency (CBDC). Palauan President believes that the national digital currency would provide the citizens of Palau with greater financial benefits.
The island nation, Palau is especially vulnerable to some of the effects of climate change, and Ripple said this was one of the reasons it was chosen for the job. The firm said the XRP Ledger is carbon-neutral and 120,000X more energy-efficient than Proof-of-Work blockchains.
Ripple is no stranger to climate and environmental considerations. In February an announcement was made that its goal of becoming carbon net-zero by 2030, starting by making XRP carbon net-zero with the help of the EW Zero tool.
