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Palau’s Pacific Island Group Launches a Stablecoin Test on the XRP Ledger

Author

Jay Solano

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2 mins
Last update

Author

Jay Solano

Tags

Category

News - Archive

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

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PSC (Palau stablecoin) has been made available in the nation for three weeks, and the trial will continue until August.

According to Jay Hunter Anson, a member of the board of directors at the Ministry of Finance, Palau, a nation made up of about 340 islands in the Pacific Ocean, is testing a stablecoin that is pegged to the dollar.

The first stablecoin was created in July and will operate through August, according to Anson, who said the project began in March with wallet design. On the XRP ledger of Ripple, the stablecoin will function. Technical support and personnel have been given by Ripple. The nation declared in 2021 that Ripple would help it create plans for a digital currency.

Anson said in the tweet. A further announcement is due on Thursday. “We’ve been distributing PSC (Palau Stablecoin) for three weeks. Today is our first official press release,”

There is no assurance that the 20,000-person state, which operates without a central bank and only accepts the dollar as payment, would carry out the initiative after the test is finished.

“We will provide suggestions in a report to the president and legislators on whether or not the stablecoin is a beneficial initiative for Palau,” Anson said. “The following stages will rely on what the relevant government authorities approval.”

Cryptic Labs, a blockchain research business, is helping the nation launch the world’s first digital residency program. This grants applicants a non-fungible token (NFT) that serves as their resident ID card and enables them access to Palau-only amenities like shipping and a physical address. Palau President Surangel S. Whipps, Jr. told in January that the nation is also trying to establish a cryptocurrency exchange.

The Pacific region has seen a rise in the use of cryptocurrency. Tonga declared last year that it intended to legalize bitcoin as currency there. The Republic of the Marshall Islands also declared in 2018 that it intended to launch its own digital currency.