Palau has reportedly teamed up with cryptocurrency firm Ripple to launch a national stablecoin, according to Wu Blockchain.
The country’s president, Surangel Whipps Jr, joined a virtual panel discussion on web 3.0, metaverse and the future of blockchain.
He mentioned Palau’s digital residency policy and the development of a national stablecoin in partnership with Ripple.
The stablecoin will reportedly be a US dollar-backed cryptocurrency and aims to facilitate secure and easy digital payments. Palau does not have a central bank and uses the US dollar as its official currency.
Furthermore, the national stablecoin project is seen as a step towards creating a central bank digital currency.
The country passed the Digital Residency Act earlier this year, which allows people to obtain a digital identity from Palau via a virtual process.
The act is aimed at diversifying the country’s economy and increasing adoption of the digital residency scheme.
Changpeng Zhao of Binance and Vitalik Buterin of Ethereum have both reportedly expressed an interest in Palau’s digital identity programme.