Ripple and the State of Palau team up to create a national stablecoin

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The island state of Palau and the cryptocurrency company Ripple Labs announced the launch of a joint project to create a state digital stable currency.

Palau President Surangel S. WhippsWhipps said in an interview with Bloomberg that a joint IT team from the island nation and Ripple Labs are working to explore the possibilities of creating a “national stablecoin.”

Discussing digital asset strategy,the president of the archipelago of more than 500 islands, explained that such a small country must strive to diversify its economy and “take full advantage of new technologies.”

“Palau, in collaboration with Ripple, hopes to launch a national stablecoin in the very near future. This will help make domestic payments simple and secure,” Whipps said.

The head of state clarified that the creationA stablecoin backed by the US dollar is tantamount to creating the Central Bank's own digital currency. The official currency of Palau is the US dollar, and the country does not have its own Central Bank.

In January, the small Pacific nation of Palau announced
about partnership with Cryptic Labs and the launch of Root Name System (RNS), a blockchain-based “digital residence” system.