The Ministry of Finance in Palau recently inaugurated the second phase of its Palau Stablecoin (PSC) program, aiming to foster a robust digital ecosystem and heightened user engagement while adhering to regulatory standards.
Jay Hunter Anson, a cybersecurity consultant and advisor to the Ministry, announced the program’s second phase launch on December 15 via X (formerly Twitter).
Palau PSC and Ripple Partnership Extension
Anson revealed Palau’s intent to expand its collaboration with Ripple during phase two, intending to harness Ripple’s central bank digital currency (CBDC) platform and technical expertise for the PSC initiative. PSC, a digital currency pegged to the US dollar, operates on Ripple’s XRP Ledger.
Anson emphasized that the PSC’s second phase will concentrate on establishing fresh partnerships for marketing initiatives and sustainable development goals. Additionally, the phase will prioritize cultivating a digital ecosystem, enhancing user engagement, and upholding stringent regulatory compliance standards.
Insights from Ripple’s CBDC Strategic Adviser
Anthony Welfare, Ripple’s CBDC strategic adviser, weighed in on the benefits of blockchain-based digital currencies. He highlighted advantages such as reduced transaction fees and their potential to mitigate the environmental impact of currency circulation.
Welfare acknowledged the challenges in Palau, including complexities in traditional currency movement across its 340 islands and high mobile data costs. He mentioned PSC’s capability for offline transactions, even during power outages, as a solution.
Success of Phase One and Volunteer Participation
Palau’s Ministry of Finance celebrated the triumph of the program’s initial phase on December 7. The three-month-long phase involved 168 government employee volunteers who each received 100 PSC. These volunteers utilized the digital currency for transactions at local participating retailers through mobile payment via QR codes.
Positive feedback from both retailers and volunteers regarding their experience with PSC characterized the success of phase one.
The launch of the PSC program’s second phase, coupled with the prospective Ripple partnership, marks a significant step toward Palau’s digital ecosystem development and regulatory compliance objectives, fostering increased user engagement within the country’s financial landscape.