In response to ongoing rumors, Palau’s Digital Residency Office Director, Jay Hunter Anson, has clarified that the country’s partnership with Ripple is still intact. Anson also provided a brief recap of Palau’s journey with Ripple since 2021.
The Republic of Palau is strategically partnered with Ripple Labs to develop a government-backed stablecoin. Speculations regarding the termination of this partnership have been circulating on various news outlets and social media platforms. In order to clarify the situation, Jay Hunter Anson, the Director of Palau’s Digital Residency Office within the Ministry of Finance, stated that the partnership with Ripple is still ongoing. He emphasized Palau’s excitement to continue the partnership and refine the stablecoin solution design using the XRP Ledger (XRPL).
Anson clarified that the Palau Stablecoin (PSC) was always intended to be a temporary research and development pilot. Originally scheduled for 60 days, the pilot has been extended for an additional 30 days to test additional use cases and accommodate popular demand. After the pilot ends, the team will compile data and complete a report that includes recommendations for the next pilot and requirements for a full production program.
In response to another article claiming the termination of the partnership, Anson explained that the decision to stop the distribution of the Palau Stablecoin was mainly due to completing retailer redemption and starting the report on the project’s development. To control circulation, a new Palau Stablecoin has been minted for the next pilot. Anson also provided details about the background of the project, stating that discussions between the Palau government and Ripple started in 2021, while the work on the Palau Stablecoin solution design using the XRPL began in June 2022.
The project reached various milestones, such as calling 200 pilot volunteers and participating retailers in March 2023, followed by volunteer training, onboarding, and KYC verification in April 2023. The testing of the solution design commenced in July and was completed in August 2023. Currently, there is a pending survey and final report to the president and Congress. The second pilot is scheduled to begin in November.
Ripple was specifically chosen for this program due to its carbon neutrality and energy efficiency, which is 120,000 times greater than proof-of-work blockchains. Additionally, Ripple is known for its speed, low cost, and scalability. President Surangel Whipps Jr. expressed his delight in partnering with Ripple, highlighting their commitment to financial innovation and technologies. The initial phase of the partnership focuses on a cross-border payments strategy and exploring options to create a national digital currency, aiming to provide Palau’s citizens with greater financial access.
Despite the clarification of the ongoing termination rumors, the price of XRP, Ripple’s cryptocurrency, has experienced a bearish market sentiment, currently being priced at $0.500033. XRP has seen a 1.5 percent decrease in the last seven days and a 22.8 percent decrease in the last 30 days.
In conclusion, Palau’s partnership with Ripple remains intact, with a focus on developing a government-backed stablecoin. The Palau Stablecoin project has reached significant milestones, and the collaboration with Ripple is driven by the company’s carbon neutrality, energy efficiency, speed, low cost, and scalability. The partnership aims to enhance financial access for the citizens of Palau. Despite the ongoing rumors, XRP’s price has experienced a bearish market. It will be interesting to see the future developments and outcomes of Palau’s partnership with Ripple.