The government of Palau has teamed up with Ripple Labs to launch a USD-backed stablecoin named Palau Stablecoin (PSC) on the XRP Ledger.
Jay Hunter Anson, the director of Palau’s Digital Residency Program and a member of the Ministry of Finance, took to Twitter to share the news, shedding light on the successful partnership between the Palau National Treasury and Ripple Labs.
The event unfolded at the National Capitol in Ngerulmud, Palau, where representatives from the Palau National Treasury and Ripple gathered to celebrate the launch of the Palau Stablecoin.
“The PSC launch is an important step in our partnership with Ripple, as we together delve into the possibilities of this stablecoin for specific use cases within our country.”
Jay Hunter Anson, director of Palau’s Digital Residency Program
Palau embraces XRP Ledger
Notably, the Palau Stablecoin is built on the XRP Ledger (XRPL), showcasing Ripple’s technology as the backbone of this financial initiative. Controlled and limited PSC pilot tests have been conducted to assess the effectiveness and efficiency of the solution co-designed with Ripple.
The Palau Stablecoin pilot program has already seen volunteer users participating in the testing phase. Videos shared by Anson on Twitter showcased transactions at partner vendors in Palau, with transaction receipts promptly confirmed.
As earlier reported by crypto.news, the partnership between Ripple and the Republic of Palau was established at the end of December last year.
Given that the island state lacks a functioning central bank and relies on the US dollar as its primary medium of exchange, creating a USD-backed stablecoin is a significant outcome of the national initiative. The president described this move as a “step towards our central bank digital currency.”
At the time of writing, XRP was trading at $0.69, up 1.7% in the last 24 hours.