The over 500-island archipelago is also working on issuing NFT ID cards to its digital residents.
According to Wu Blockchain, the island nation of Palau has partnered with crypto technology company Ripple to create a national stablecoin.
Surangel Whipps Jr, the country’s President, virtually joined a panel discussion on web 3.0, Metaverse, and the future of blockchain. He discussed the country’s digital residency policy as well as the national stablecoin project.
According to President Whipps, Palau’s national stablecoin will launch soon in collaboration with Ripple, facilitating simple and secure digital payments.
Palau does not have a central bank, and the US dollar is the country’s official currency. The national stablecoin project’s goal is to launch a USD-backed stablecoin. According to the president, this is a “step toward our own Central Bank Digital Currency.”
President Whipps stated about the stablecoin project:
“We feel that this is important and it will help make Fiat on ramping easier. Our digital residents will also have banking access and through Binance Pay options will make offering easier too. We really believe that they don’t compete but they actually are symbiotic and they can help each other and strengthen the crypto ecosystem.”
President Whipps stated that after facing the challenges of the pandemic, the government decided to diversify its economy and passed the Digital Residency Act earlier this year to facilitate diversity. Individuals can obtain a digital identity from Palau through a virtual process under the act.
Despite the fact that it has gained traction since its inception, President Whipps stated that the country is looking for ways to increase adoption by broadening the scope of digital residency. He stated,
“We’re also looking at exploring other features that we could offer like registration of e-corporations so that digital residents can conduct business globally through Palau’s convenient R&S portal. We’re hoping that they will be able to manage their identity, contacts, and e-corporations on this portal.”
President Whipps also stated that top cryptocurrency executives such as Binance’s Changpeng Zhao (CZ) and Ethereum’s (ETH) Vitalik Buterin are interested in the country’s digital identity programme. President Whipps stated that CZ personally visited Palau to discuss collaboration options, while Buterin met with the president virtually to discuss further expanding the country’s ID ecosystem.