Notwithstanding the issues, Ripple has not accepted its defeat in the mission to secure a significant position in the global industry of digital payments, and although the situation is not so good in the USA, one country is considering the firm to be the most suitable option to construct a native currency for it which would exactly be based on the dollar of United States. As per the press release which Ripple shared, Palau selected the XRP ledger for the creation of digital dollars that would circulate internally across the country. The concept, Ripple elaborated, is to fashion a USD-supported stablecoin which would also provide other services such as corporate registries.
Palau, much Ripple-friendly however not as much as to accept XRP
Palau is a country that does not possess a fiat currency. Similar to El Salvador, citizens utilize the USD being a legal tender. Nonetheless, the little island situated in Oceania is not in the favor of adopting any cryptocurrency (including XRP) to function as legal tender nevertheless, expects to issue a version of the USD which would be managed at the government level. In this way, Palau’s move resembles that of introducing a stablecoin instead of a CBDC, and that is seemingly so because there is no Central Bank in the country.
Surangel S. Whipps Jr (the president of Palau) was optimistic about Ripple delivering the technology required for the development of a finance-related product that would cater to the needs of the country. He stated that they were delighted to have collaboration with Ripple as their commitment included leading the innovation in technologies and finance. The initial phase of the project would concentrate on the cross-border payments strategies as well as delving deep into options to develop a digital currency at the national level, providing better financial access to the Palau citizens.
Ripple’s regulatory issues
The respective news did not affect the XRP price even to the least extent. After the upsurge of the token in July this year, XRP fell up to 34% in less than 3 weeks, from $1.4 to as low as $0.86. From that point onward it is maintaining the same spot without even surpassing $1.2. Presently, the SEC (Securities and Exchange Commission) has prosecuted the firm for allegedly trading XRP as security without registration. Ripple is struggling to defend its position, nevertheless, its reputation has considerably been shattered by the respective case.
