- The Republic of Palau will develop its own CBDC in partnership with Ripple.
- The country will also explore other use cases with the XRP Ledger.
- Palau is a country in Oceania composed of 500 islands.
The Republic of Palau is one of the newest countries to join the fray in the creation of a central bank digital currency (CBDC). For this endeavor, the country has partnered with fintech firm Ripple.
As part of the partnership, Ripple will aid Palau in creating a digital currency backed in US dollars. Also, the country will explore better infrastructure options for cross-border payments.
According to the announcement, Palau may launch its CBDC in the first half of 2022. For its part, Ripple will assist the country in terms of “technical, business, and policy support”.
Palau will develop the CBDC on the XRP Ledger, which is a decentralized and open-source blockchain infrastructure independent of Ripple. Major banking institutions are already using XRP Ledger to boost their cross-border transactions.
Meanwhile, Palau is a small island country situated in the western Pacific Ocean. The country is an archipelago, composed of more than 500 islands, and is part of Oceania. Teeming with rich marine life, the country is a popular tourist destination. According to recent figures, the country has a population of almost 20,000.