Ripple recently announced a partnership with the Republic of Palau. The blockchain network has been making waves ever since its monumental win against the SEC. The collaboration will see Ripple and the Republic of Palau piloting a US dollar-backed stablecoin. The project will take place on the XRP Ledger (XRPL), and the parties have already entered Phase One.
Named PSC (the Palau Stablecoin), the dollar-backed stablecoin will involve government employees. These employees have already volunteered to use the stablecoin with limited merchants in the region.
King’s Minute Mart, Surrangel and Sons, and The Penthouse Motel will be among the merchants to accept the stablecoin during the pilot. Jay Hunter Anson, the FinTech PM for the Palau Ministry of Finance, talked about the development.
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According to Anson, the prototype virtual currency is under the pilot testing phase. It packs the potential to change how goods and services are purchased in Palau.
With the Palau Stablecoin, citizens get a secure, convenient, fee-free, and transparent payment option. This option is more efficient than any other online payment service in the region, added Anson.
- Whipps Jr, the President of the Republic of Palau, also expressed delight about the integration. According to the President, digitizing Palau’s currency can make way for mobilizing the economy and government processes.
It will boost financial transitions while empowering the citizens of Palau, added the President. The agreement will also see Palau leveraging Ripple’s CBDC Platform. The end-to-end solution has been designed for central banks to release their central bank virtual currency. With Ripple’s technical resources, Palau can manage and modify the stablecoin’s entire lifecycle.
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After Phase One is over, the Palau Stablecoin Pilot program will expand its adoption and benefits to a bigger audience. The estimated time for the pilot project is expected to be around two months.
