The Ministry of Finance in Palau launches Phase 2 of the Palau Stablecoin Program
The Ministry of Finance in Palau has officially launched the second phase of the Palau Stablecoin (PSC) Program. This phase aims to establish new collaborations for marketing and sustainable development goals, with a focus on building a digital ecosystem and increasing user engagement while adhering to regulatory compliance.
Palau extends partnership with Ripple for CBDC pilot program
Palau intends to extend its partnership with Ripple in this next stage of the PSC program. By leveraging Ripple’s CBDC platform and technical expertise, Palau aims to expand accessibility and user participation in the digital currency pilot program.
PSC: A digital currency pegged to the USD
The Palau Stablecoin (PSC) is a digital currency pegged to the U.S. dollar at a 1:1 ratio. The PSC is stored in a commercial bank with FDIC insurance, and it is issued by the Palau government on the XRP Ledger (XRPL).
Ripple’s CBDC Strategic Advisor highlights advantages of blockchain-based digital currency
Anthony Welfare, Ripple’s CBDC Strategic Advisor, emphasizes the benefits of blockchain-based digital currency like reduced transaction fees and the potential to address the environmental impact of money circulation. However, he also acknowledges challenges such as moving traditional currencies across Palau’s islands and high mobile data costs in the country.
PSC pilot program receives positive feedback from participants
The initial phase of the PSC program was successful, with 168 volunteers from government employees participating. Participants received 100 PSCs each to use at local retailers, making payments through their mobile phones via QR codes. Both volunteers and retailers provided positive feedback about their experience with the digital currency.
Hot Take: Palau’s PSC Program Advances to Phase 2 with Ripple Partnership
The Ministry of Finance in Palau has taken a significant step forward in its Palau Stablecoin (PSC) Program by launching Phase 2. With an extended partnership with Ripple, Palau aims to expand the accessibility and user participation of its digital currency. By leveraging Ripple’s CBDC platform and technical expertise, Palau is positioning itself as an innovator in the digital currency space. The success of the initial phase and positive feedback from participants demonstrate the potential impact of blockchain-based digital currencies in improving financial transactions. As Palau continues to develop its digital ecosystem, it sets an example for other countries looking to explore the benefits of CBDCs.
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