Palau joins hands with Ripple to create national digital currency

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Palau, an island nation in the Pacific Ocean, has partnered with crypto solutions provider Ripple to create its own national digital currency. In this, work will be done on creating a digital currency with the security of the US dollar. As part of the partnership, Ripple will support Palau in technology, business, design and policy related support. The government of Palau wants to provide an option to the people for bank currencies.

If successful in creating a national digital currency, the government of Palau will explore the possibility of expanding its use on the decentralized public blockchain XRP Ledger (XPRL). Palau consists of about 340 islands and its economy depends on remittances or remittances from its people employed abroad.

Countries that rely on remittances get more money from transactions using crypto technology. Cryptocurrencies are not regulated by any bank and as such financial transfers from abroad do not attract any service fees. International money transfer platforms charge a percentage of the remittance as a service fee when making financial transfers through normal currencies and a smaller amount is transferred to the recipient of the remittance.

Last month, a Tonga MP also raised the issue. He had told that more than 50 percent of the amount sent from Western Union is being taken as fee. However, El Salvador has solved this problem by giving legal status to Bitcoin. El Salvador is now preparing to build the world’s first “Bitcoin City”. Its initial funding will be done from Bitcoin bonds. This was recently announced by the President of El Salvador, Nayib Bukele. He wants to take advantage of cryptocurrencies to increase investment in his country.

Ripple is ready to help make Palau its national digital currency. “We have a great chance with technology and experience to help make a real economic and social impact in Palau,” said Ripple Vice President, James Wallis.

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