Despite the difficulties, Ripple remains committed to its goal of becoming a major player in the global payments industry, and despite the fact that things aren’t going so well in the United States, one country is considering Ripple as the best option for developing a domestic currency based entirely on US dollars: Palau.
Palau chose the XRP Ledger to create digital dollars to circulate within the country, according to a Ripple press release. The goal, according to Ripple, is to create a USD-backed stablecoin around which other services, such as business registers, can be built.
Palau does not have its own fiat currency. Citizens, like those in El Salvador, utilise the US dollar as legal money. The small island in Oceania, on the other hand, does not want to use XRP or any other cryptocurrency as legal cash and instead wants to create a government-managed digital equivalent of the US dollar.
Palau’s approach resembles the issuing of a stablecoin rather than a CBDC in this regard. Given Palau’s lack of a central bank, this makes a lot of sense.
Surangel S. Whipps Jr, the president of Palau, was optimistic that Ripple could deliver the technology needed to create a financial product tailored to Palau’s needs.
“As part of our commitment to lead in financial innovation and technologies, we are delighted to partner with Ripple. 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.”
Ripple maintains a blockchain network that is efficient, carbon-neutral, quick, and cost-effective. The XRP Ledger, according to a note released by Ripple, would allow Palau to fully settle transactions in less than 5 seconds at a cost of less than a penny on the dollar for each transaction.
The revelation appears to have had little to no impact on the price of XRP, Ripple’s native coin.
Following the July 2021 rise, XRP dropped approximately 34% in just three weeks, from $1.4 to $0.86. It has been trading sideways since then, unable to break through the $1.2 resistance or the $1 support.
XRP increased by 2.97 % from $1.03 to $1.06 on November 23. However, its current price of $1.045 indicates an almost 2% dip, indicating the token’s lack of trend once again.
Ripple’s regulatory issues are most likely to blame for much of this reluctance.
The company is now being sued by the SEC for selling XRP as an unregistered security. Ripple is defending itself, but the case has been a big setback for the company’s reputation – and, as a result, the value of its XRP token.
The XRP token, which was formerly in the top three in terms of market valuation, is now placed seventh, and the token’s once-dominant fan network, the XRP Army, has all but died on Crypto Twitter.