Global payments company Ripple has partnered with the island country Republic of Palau to develop strategies for a digital currency.
- “The partnership will initially focus on developing strategies for cross-border payments and a USD-backed digital currency for Palau,” the fintech company announced on Tuesday.
- This could lead to the implementation of the the world’s first government-backed stablecoin in the first half of next year. Ripple would provide the country with technical, business, design and policy support.
- For countries like Palau a USD-backed stablecoin could provide a viable alternative to central bank digital currencies (CBDCs), Ripple said.
- “As part of our commitment to lead in financial innovation and technologies, we are delighted to partner with Ripple,” President Surangel Whipps Jr. said.
- “The first phase of the partnership will focus on a cross-border payments strategy and exploring options to create a national digital currency, providing the citizens of Palau with greater financial access,” the president said.