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There has been a sudden flare-up in the popularity of cryptocurrency in the world. Countries, big or small, are trying to integrate blockchain and cryptocurrencies into their economies through the digital transition.
Several central banks are seeking to introduce their own central bank digital currencies (CBDCs), while others are focusing on stablecoins.
With a population of about 18,000, the palau is probably not the first place that comes to mind when most people consider technologically advanced nations.
However, the small nation of the Pacific Island is on an aggressive campaign to secure the adoption and official acceptance of cryptocurrency.
Palau And Ripple Work On National Stablecoin
Stablecoins and the US dollar. Picture: Financial moguls.
According to the President of the Republic of Palau, Surangel S. Whipps Junior, The country's IT engineers have proactively explored the potential to develop national leadership through the blockchain company Ripple Labs.
The president pushed the establishment of a stablecoin as a method for improving the quality of life of palauans and diversifying the economy away from tourism, which, prior to the COVID-19 health crisis, represented approximately 50% of the archipelago's GDP.
Presiding Officer surangel s. whipps, jr. said that the country's team is working with undulating laboratories to explore the creation of a "national stablecoin." As mentioned in the previous section, palau will deliver identification cards to its digital residents in the form of nfts on the bnb channel. https://t.co/WM1k9DFZvJ
— Wu Blockchain (@WuBlockchain) December 26, 2022
The US dollar is the official currency of Palau, which does not have a central bank.
The objective of the national stablecoin program is to develop a stablecoin backed by USD. The whips called the proposal stablecoin a "move towards our own digital central bank money."
Whipps also discussed BINANCE CEO Changpeng Zhao’s recent visit to the island nation and their discussions on how to utilize the crypto exchange’s payment infrastructure to facilitate payments for digital citizens of the nation.
President of the Republic of Palaos Surangel S. Whipps Jr. Picture: Watcher Guru.
Stablecoin has supported the economic development of Palau.
“This is a new world for Palau […] and one of the advantages we have is we’re small and hopefully we can mobilize our government and be more adaptive to the changes that need to be made in this fast-changing environment,” Whipps said in quotes by Watcher Guru.
According to a survey by the U.S. Doctoral School, palau GDP fell by 8.7% in 2020, primarily due to the pandemic-induced collapse in tourism.
Whipps revealed at the beginning of the previous year that he foresaw citizens purchasing products with their smartphones and government employees earning instantaneous pay rather than waiting days for the transaction to be processed at their local bank.
In the meantime, Whipps also revealed that he had had a virtual meeting with Ethereum co-founder Vitalik Buterin, where they discussed the possibility of launching an R.
The chair further stated:
"We are also looking at other services we can offer, like the registration of online companies, so that digital citizens can do business on a global scale thanks to the ease of access of Palau.
