Palau and Ripple have reportedly partnered together to create a national stablecoin, as reported by Wu Blockchain.

President Surangel Whipps Jr participated in a virtual panel discussion on web 3.0, metaverse and the future of blockchain, during which he mentioned the development of a US dollar-backed cryptocurrency, designed to facilitate secure and easy digital payments.

As Palau does not have its own central bank, the national stablecoin project is seen as a step towards establishing a digital currency.

This year, the country passed the Digital Residency Act, which enables individuals to get a digital identity from Palau through a virtual process.

Changpeng Zhao of Binance and Vitalik Buterin of Ethereum have reportedly expressed interest in the digital identity programme.