According to Wu Blockchain, the island government of Palau collaborated with the cryptocurrency technology firm Ripple to create a national stablecoin for the state.
The president, Surangel Whipps Jr., participated in a panel discussion on the future of blockchain technology, web 3.0, and the Metaverse remotely. He spoke on the nation’s digital residency policy and the national stablecoin initiative.
Stablecoin of Palau
President Whipps has announced that Palau’s national stablecoin, developed in collaboration with Ripple, would be released shortly to enable fast, cheap, and secure online transactions.
Since Palau does not have its own Central Bank, the U.S. dollar is the de facto currency there. Launching a stablecoin pegged to the US dollar is the focus of the national stablecoin initiative. A move toward its own Central Bank Digital Currency, as the president put it, would result from this.
President Whipps made the following statement on the stablecoin initiative. it would facilitate the on-ramp for Fiats. Thei r digital citizens would have access to financial services, and the availability of Binance Pay would facilitate purchases and sales. They would complement one other rather than compete, and their mutual support would be beneficial to the whole cryptocurrency industry.
Digital Identity
In light of the problems posed by the epidemic, President Whipps announced earlier this year that the government had established the Digital Residency Act to encourage economic diversification. Palau’s Digital Identity Act facilitates an online application procedure for obtaining a digital identity issued by the government of Palau.
President Whipps has said that the government is looking towards expanding the digital residency scope in order to boost acceptance, despite the fact that it has been gaining traction since its debut. In his words:
We’re also looking at exploring other features that we could offer like registration of e-corporations so that digital residents can conduct business globally through Palau’s convenient R&S portal. We’re hoping that they will be able to manage their identity, contacts, and e-corporations on this portal.
President Whipps also said that prominent crypto industry figures, such as Binance’s Changpeng Zhao (CZ) and Ethereum’s (ETH) Vitalik Buterin, have shown an interest in the country’s digital identification initiative. President Whipps claims that CZ traveled to Palau in person to explore potential partnership opportunities, while Buterin met remotely with the president to promote the expansion of the ID ecosystem in Palau.
