The Republic of Palau has made a significant move by partnering with Ripple Labs to create its inaugural stablecoin, the Palau Stablecoin (PSC).
The Director of Palau’s Digital Residency Program and a member of Palau’s Ministry of Finance, Jay Hunter Anson, took to Twitter to share the news of this collaboration between the Palau National Treasury and Ripple Labs. According to the report, the first Palau Stablecoin (PSC) has been minted.
🇵🇼 Palau National Treasury Director and our Industry partner @Ripple Senior Engineer & Lead Project Manager celebrate minting the very first Palau Stablecoin (PSC) at the National Capitol in Ngerulmud
The very limited & controlled PSC pilot tests specific use cases inside Palau… pic.twitter.com/LYcA1cjJJi
— Jay Hunter Anson (@JHX_1138) July 24, 2023
Launching the Palau Stablecoin
Representatives from both the Palau National Treasury and Ripple came together at Palau’s National Capitol in Ngerulmud to celebrate the minting of the very first Palau Stablecoin (PSC). Anson described this event as a crucial step in their joint exploration of the stablecoin’s potential use cases within Palau.
Anson’s tweet expressed the importance of the launch, saying, “The PSC launch is an important milestone in our collaboration with Ripple as we work together to explore the possibilities of this stablecoin in specific use cases within our country. We have received explicit approval from the Palau Congress, giving the PSC pilot program an official stamp of legitimacy.”
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Ripple Technology Empowering Palau
The Ministry of Finance in Palau initiated the Stablecoin project to address specific financial needs within the nation. By sponsoring this project, they aim to reduce payment costs and improve access to financial services, particularly for underserved communities and different socio-economic groups, through the use of digital solutions.
Notably, the Palau Stablecoin operates on the XRP Ledger (XRPL), showcasing Ripple’s technology as the foundation of this financial initiative.
Anson’s tweets also shed light on the careful development process of the Palau Stablecoin. The project undergoes controlled and limited pilot tests to evaluate the effectiveness and efficiency of the solution co-designed with Ripple. These pilot experiments provide valuable insights into the stability and usability of the Palau Stablecoin before considering its potential public release.
“Our controlled pilot tests have been enlightening, and we are optimistic about the potential impact of the Palau Stablecoin on our nation’s economy,” Anson stated.
Anticipation Builds with Successful Pilot Program
The Palau Stablecoin pilot program has already seen active participation from volunteer users during the testing phase. Videos shared by Anson on Twitter showcased seamless transactions at partner vendors in Palau, confirming the prompt transaction receipts.
A Palau Stablecoin Pilot volunteer user makes a purchase at partner vendor Kings Mart in Koror, Palau 🇵🇼 The very limited & controlled PSC pilot tests specific use cases inside #Palau to validate our solution design in collaboration with #Ripple as authorized by the Palau… pic.twitter.com/WZNCsGQ2Jt
— Jay Hunter Anson (@JHX_1138) July 19, 2023
The successful implementation of the pilot program has drawn attention from the XRP community, creating anticipation for the official joint press release scheduled for July 27 at 9:00 AM in Ngerulmud, Palau.
Earlier reports highlighted the partnership between Ripple and the Republic of Palau, which began at the end of December of the previous year. With no functioning central bank in the island state, the US dollar serves as the primary medium of exchange throughout the country.
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The creation of a USD-backed stablecoin is seen as a significant achievement for the national stablecoin initiative. Palau’s president has described it as a “step towards our own central bank digital currency.”
As of press time, XRP was trading at $0.6870, just above the 23.6% Fibonacci retracement level at $0.6862. The XRP bulls will aim to defend this support level, as a weekly close above it could unlock new upward momentum for the cryptocurrency.
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