Palau is taking a significant step forward in its digital financial landscape by launching the second phase of the Palau Stablecoin (PSC) program. Announced on December 15 by Jay Hunter Anson, a cybersecurity advisor to the Ministry of Finance, this phase is set to refine the nation’s digital ecosystem and bolster user engagement, with a strong emphasis on regulatory compliance.
The partnership with fintech leader Ripple is poised to grow, as Palau leverages Ripple’s Central Bank Digital Currency (CBDC) platform and its technical expertise. This collaboration is expected to enhance the PSC’s infrastructure, providing a robust foundation for the digital currency that is pegged to the United States dollar and utilizes Ripple’s XRP Ledger.
Anthony Welfare, Ripple’s CBDC strategic advisor, underscored the benefits of blockchain technology, including reduced transaction fees and a reduced environmental impact of money circulation. He also mentioned the unique capability of the PSC to enable offline transactions, a critical feature for Palau’s residents during power outages.
The initial phase of the PSC program concluded successfully on December 7, with positive feedback from 168 government employee volunteers who used the digital currency at local businesses.
