Palau works with Ripple in the next phase of the country’s stablecoin launch
Ripple Advisor highlights PSC's potential for low-cost transactions.
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The Ministry of Finance of Palau has officially launched the second phase of the Palau Stablecoin (PSC) initiative. Jay Hunter Anson, an advisor from Palau, confirmed this development. The Palau Ministry of Finance issues and manages the PSC, a stablecoin fully backed by US dollar cash balances.
The PSC project team plans to use Ripple’s Central Bank Digital Currency (CBDC) technology and technical expertise in its new phase. This initiative plays a vital role in Palau’s strategy to strengthen its collaboration with Ripple, which is expected to benefit the PSC significantly.
Anson outlined the strategic growth plans for the second phase of the PSC pilot program. The focus will be on forging new partnerships to meet sustainable development and marketing goals.
“Phase 2 will focus on building a robust digital ecosystem, expanding accessibility and user participation with an emphasis on legal and regulatory compliance.”
He also added that:
Palau’s Stablecoin program represents a significant step towards a digitally empowered future, demonstrating the nation’s commitment to innovation and financial modernization.”
According to Ripple advisor Anthony Welfare, the Palau Stablecoin will enable cheap peer-to-peer and offline transactions.
“Using a blockchain-based Digital currency opens up so many innovative and useful opportunities – such as reducing fees associated with financial transactions, reducing the carbon footprint of the money flow and increased inclusion, since no bank account is needed to use the PSC. Note Palau is made up of 340 islands. There are challenges getting Fiat currency around these, and Mobile data is expensive. The solution enables offline payments so that if there is a power outage or data loss, transactions can still be made.”
By leveraging Ripple’s CBDC technology, the PSC aims to overcome the unique challenges of Palau’s geographical layout and high mobile data costs.