The latest update has explained the reason behind the suspension of the Palau Stablecoin (PSC) that was released a few months ago.
Recall that the report about the suspension of minting and distribution of Palau Stablecoin became a top topic on various crypto news outlets. What brought about the concern was the fact that the announcement came with little clarification about the reason for the sudden suspension.
Read Also: XRP Ledger-Based Palau Stablecoin (PSC) Gets Live Testing: A Game-Changer for Digital Payments
In the report, it’s stated that the issuance of the Stablecoin will stop on the 8th of September, while it’s scheduled to become unspendable for users from September 15. The one-week interval is meant to give room for retailer redemptions before official termination.
As the major reason for this significant action was not clearly stated in the announcement, it gave room for speculation and concern within the XRP community. Since the project is backed by Ripple and built on top of XRP Ledger (XRPL), members of the community were relentlessly waiting to witness the success of the nascent project.
Clarity on Why Palau Stablecoin (PSC) Was Halted
In a follow-up update on X, Jay Hunter, the leader of the digital residency program, shared the reason for the suspension.
According to Hunter, the goals and objectives of the pilot program have been accomplished. He said the project is now set for the next phase.
Acknowledging Ripple’s capability, he wrote, “Picking the right industry partner and platform is crucial. This truly is a testament to the technical skills and expertise at Ripple.”
In the post, Hunter also pinpointed the viability of the XRPL technology as a stablecoin platform.
Yes sir. We went in with a meticulously crafted plan, trained operators, and an excellent solution design with clear goals and objectives. We accomplished our goals and objectives and we are ready to move to the next phase.
Picking the right industry partner and platform is…
— Jay Hunter Anson (@JHX_1138) September 7, 2023
Read Also: Palau Stablecoin (PSC) Transactions Can Now be Tracked on XRP Ledger (XRPL)
Despite the clarity, some users still believe that the testing span is too short. Recall that the stablecoin project was launched in July. So, people think suspending the program in September may not provide sufficient data and experience to make informed decisions for future developments.
Why Palau Launched the Stablecoin?
The stablecoin project was initiated by the Ministry of Finance in Palau 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.
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