Palau Islands Pilot Testing Ripple-Based Stablecoin

Palau's USD-backed stablecoin will undergo a trial minting on the XRP Ledger via Ripple's CBDC platform.

Palau Islands Pilot Testing Ripple-Based Stablecoin

As announced on the morning of July 27, Palau—comprising 340 islands in the Pacific Ocean—has partnered with Ripple to pilot its own stablecoin.

Palau Stablecoin (PSC), nicknamed "Kluk," is pegged 1:1 to the US dollar and will be deployed on the XRP Ledger (XRPL) through Ripple's CBDC platform. The initial users of PSC will be Palauan government employees.

President of Palau, Surangel Whipps Jr., stated in a press release:

"Collaborating with Ripple to build our national digital currency is part of our country's financial and technological leadership strategy. This enables easier financial access for Palauan citizens."

"If successful, the trial could revolutionize the payment process for goods and services in Palau," remarked Jay Hunter Anson, representative of Palau's Ministry of Finance.

Ripple's CBDC initiative was launched in May, described as a "comprehensive service platform supporting minting, management, transactions, redemption of CBDCs and stablecoins seamlessly." Ripple has disclosed negotiations with over 20 global governments in efforts to pilot CBDC projects.

"We launched the pilot in March.

We’ve been distributing PSC for three weeks.

Today is our first official press release.
...#Palau #Dollar #Stablecoin #PSC #Kluk #XRP #XRPLedger #Ripple #DigitalCurrency #Blockchain #Technology #Fintech— Jay Hunter Anson (@JHX_1138) July 26, 2023

Following Hong Kong, Palau's stablecoin trial marks the latest project to launch on this platform. However, there is no guarantee that the nation of 20,000 people, without a central bank and using the US dollar as legal tender, will continue the project beyond the trial period. The next steps will depend on the decision of the Palauan government.

Palau has previously collaborated with blockchain research firm Cryptic Labs to develop the world's first digital residency program. Upon registration, citizens receive an NFT representing their ID, along with various privileges. Additionally, Palau is also planning to establish a national cryptocurrency exchange.

During this time, the crypto market awaits updates on the three-year SEC vs. Ripple lawsuit. In the latest ruling, the court appears to favor Ripple, stating that its XRP token is not a securities contract, setting a positive precedent for the cryptocurrency industry.