Digital payment network Ripple has partnered with the Republic of Palau to develop its own digital currency. The payment network is still on a mission to dominate the global payments industry. That is, despite the issues it is dealing with in the U.S.
Like El Salvador, the country does not have its own fiat currency or even a Central Bank. Its legal tender, instead, is the U.S. dollar. The partnership with Ripple will focus on developing a USD-backed digital currency, more like a stablecoin rather than a central bank digital currency (CBDC). This currency would help facilitate cross-border payments for the nation.
Ripple Develops First-Ever Government-Backed National Stablecoin
According to a Tuesday announcement by Ripple, the partnership will focus on developing strategies for cross-border payments. The implementation of this plan means that Palau would have the world’s first government-backed national stablecoin.
Ripple, with its experience in building global payment systems, plans to implement the national stablecoin in the first half of 2022. And also provide Palau with technical, business, design, and policy support.
Palau’s President Surangel Whipps Jr. expressed pleasure about the partnership with Ripple to advance financial innovation and technology in the country. He also acknowledges the potential of blockchain technology in transforming the country’s economy.
“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.”
Palau chose to create its digital currency on XRP Ledger (XRPL) as an alternative to central bank digital currencies (CBDCs). Being carbon-neutral and 120,000x more energy-efficient than proof-of-work blockchains is an added advantage. Additionally, the XRPL provides other benefits like scalability, speed, and low cost.
“We are excited to be working with Palau to achieve its financial and climate-related goals,” said James Wallis, VP of Central Bank Engagements at Ripple. “We have a wonderful opportunity to bring together our technology and experience with the unique characteristics of Palau to make a real economic and social impact for the country.”
This partnership is ideal, given both parties’ concerns for climate and the environment.
Ripple’s Carbon Net-Zero Goal
Last year, the leading provider of enterprise blockchain solutions for payments committed to carbon neutrality by 2030.
Subsequently, Ripple co-created EW Zero, a tool to ensure sustainability in the blockchain industry. And the XRP Ledger Foundation was the first to use this tool.
About two months ago, the company also partnered with Bhutan, the only carbon-negative country in the world, to develop its CBDC.
Featured image by Financial Times, Chart from TradingView.com
The cryptocurrency and mining law that the Paraguayan Congress passed in June was finally shelved on Dec. 5. The document, which sought to bring order to crypto mining and exchange activities in Paraguay, was ultimately dropped after failing to obtain the votes needed to reject the presidential veto it received.
Paraguayan Crypto Law Dropped After Support Wanes
The Paraguayan cryptocurrency law that was introduced in Congress in 2021 was finally shelved after not receiving the support it needed in the Deputy Chamber. The project, which was vetoed in September by President Mario Abdo, failed to gather the votes needed in order to reject this veto.
The veto had previously been rejected by the Paraguayan senate, which aimed to approve and pass the law without presidential support. The veto had the support of the Commission for Industry, Commerce, Tourism, and Cooperatives; while the Economic and Financial Affairs, and the Fight against Drug Trafficking, Related and Serious Illicit Activities commissions rejected the motion.
Some deputies questioned the veto, stating that the cryptocurrency issue must be studied and regulated due to its importance. In this vein, deputy Sebastian Garcia criticized this outcome, stating that with this move, the cryptocurrency subject will remain in an “absolute informality.”
Reasons for Supporting the Veto Motion
One of the biggest reasons wielded by President Mario Abdo and other deputies to exert a complete veto on this bill has to do with the determinations it makes about the power delivered to cryptocurrency miners. Abdo stated that cryptocurrency mining was an activity featuring “high consumption of electrical energy, but little use of labor.”
Also, the law established limits for the fees that crypto miners pay for the power delivered to their operations. This would clash with the method of determining power tariffs by the National Power Administration (ANDE), an organization that also supported the veto measure after having found several cryptocurrency farms that were connected illegally to the power network.
Deputy Arnaldo Samaniego argued that rejecting the veto motion would put ANDE in a tight spot, facing potential losses of up to $30 million. Deputy Jose Rodriguez also supported this position, explaining that the organization could not operate with losses derived from this law.
This development puts the cryptocurrency regulation efforts in Paraguay back at square one, with legislators having to once more propose and discuss a hypothetical new cryptocurrency law.
What do you think about the final destiny of the cryptocurrency and mining law in Paraguay? Tell us in the comments section below.
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.
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Orbeon Protocol (ORBN) and crypto majors are all predicted to ascend in value in 2023. Analysts expect ORBN to shine the brightest and have net returns of up to 60x. Orbeon Protocol is changing the game since its features will enable everyone to participate in early-stage acquisitions. After a rise in demand, ORBN’s presale has reached its third round.
Orbeon Protocol is a unique crowdfunding and venture capital project that aims to change the way crowdfunding and venture capital are usually done. Orbeon Protocol makes it easy for companies and startups looking for funding to connect and build communities.
Orbeon Protocol uses blockchain technology to mint NFTs representing investments based on a business opportunity. By dividing the NFT into smaller pieces, it lowers the barrier to entry so that anyone can buy into startups for as little as $1. This makes it easy for people to invest in new and exciting projects.
This has generated significant interest from both retail and institutional investors. ORBN token has rallied since its presale started, with its current price at $0.0302. Experts believe the token’s value will climb due to its various use cases and the increasing demand for equity-based NFTs.
ORBN token will let people get rewards for participating in the network. Orbeon Protocol has several benefits, such as staking, community governance, access to VIP investor groups, lower trading costs, and early access to funding rounds.
Binance has consistently been one of the top exchanges in daily trading volume and has a strong reputation in the crypto community. Binance gained significant attention from traders due to its strong performance and wide range of trading options.
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The popular coffee chain opened up the Web3 extension to its Starbucks Rewards program to a “small group of waitlist members,” including employees and customers, allowing them to engage in interactive “Journeys” that earn “Journey Stamps” in the form of Polygon-based NFTs. In addition, users also get “Odyssey Points” that will open access to new benefits and experiences in the future, including virtual espresso martini-making classes, exclusive events and trips to Starbucks roasteries and coffee farms.