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Republic of Palau Partners with Ripple to Develop Digital Currency Strategy


RobertHarpool
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1 hour ago, brianwalden said:

Is the dollar a security? Does the SEC have jurisdiction over other countries?

Several countries either use the US dollar or peg their currency to the dollar. The US has no principle right to stop them. They, of course, can come down hard on them politically, economically, and military if they so choose. But that would be an exercise of power based on a whim. I would expect that going after an itty-bitty island nation would not be a wise move for the super power who is already struggling to maintain its esteem in the eyes of the world.

On the other hand, Palau is probably dependent on the US and would give up if the US looked at them funny. But if they want to be renegades and get in on the stablecoin game, I'd bet their government-backed coin could be a top-5 stablecoin by market cap within 6 months.

Under the terms of the Compact of Free Association with the US, Palau received $450 million in assistance between 1994 and 2009. I read that the US will remain responsible for Palau's defense until 2044. For strategic purposes, the US has exclusive and unlimited access to Palau's land and waterways.

I remember when I lived there, we sometimes encountered big US Navy ships close to some of the great dive sites we took divers to. Palau is relatively close to Guam, which happens to be US territory. 

Edited by Danny
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15 hours ago, Danny said:

Under the terms of the Compact of Free Association with the US, Palau received $450 million in assistance between 1994 and 2009. I read that the US will remain responsible for Palau's defense until 2044. For strategic purposes, the US has exclusive and unlimited access to Palau's land and waterways.

I remember when I lived there, we sometimes encountered big US Navy ships close to some of the great dive sites we took divers to. Palau is relatively close to Guam, which happens to be US territory. 

How was the economy doing? Could you tell us more, I'm interested.

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7 hours ago, wojake said:

How was the economy doing? Could you tell us more, I'm interested.

I'm not an expert but when I was there (2003-2005) the economy seemed to be doing alright. Life wasn't expensive, everyone owned a car, we always went to a restaurant to have dinner and you could eat well for $15-20 per person. We had lots of tourists from Australia, Japan, the US, the UK, Taiwan and Europe. What did strike me was the bad shape of the roads. They had quite a few holes in them that got fixed rarely. 

The economy of Palau consists primarily of subsistence agriculture and fishing and relies on financial assistance from the US. The population enjoys a per capita income of more than twice that of the Philippines and much of Micronesia. Long-term prospects for the tourist sector have been greatly bolstered by the expansion of air travel in the Pacific and the rising prosperity of leading East Asian countries.

I read that the island took a huge hit during COVID with global travel restrictions putting tourism to a halt. The Asian Development Bank projected that the GDP of Palau contracted by 9.5% in 2020. 

Some additional geopolitical info that you may find interesting:
https://www.globaltimes.cn/page/202108/1231573.shtml

Edited by Danny
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