- Minfin Palau reported on the launch of the PSC pilot. It is a national dollar-backed stablecoin.
- The token is issued on the Ripple CBDC platform and operates through the Ripple Ledger system.
- The country partnered with the company back in 2021. In parallel, Ripple is in talks for similar projects in Colombia and Montenegro.
Director of Digital Residency and Palau Finance Ministry member J. Hunter Anson announced the issuance of the first PSC stablecoin in collaboration with Ripple Labs. This marks the beginning of a limited pilot to explore the full possibilities and prospects of the central bank digital currency (CBDC) in the country.
Reminder, Palau authorities entered into a strategic partnership with Ripple Labs in November 2021. The agreement aimed to issue a green digital asset backed by fiat.
Stablecoin has been dubbed PSC, but more commonly appears as Kluk. The token was issued on Ripple’s CBDC platform, which was unveiled in May 2023.
The asset is fully backed by the U.S. dollar. Initially, Anson said, only state employees will participate in the project, but they plan to expand it later.
In one post, the politician attached a video showing a member of the pilot program paying with Stablecoins at a store. Transactions go through XRP Ledger.
With the help of this project, the Ministry of Finance plans to change the structure of the country’s financial landscape, Bitcoinist said, citing the agency.
In the long term, it will improve the quality of life, support low-income people, eliminate commissions and attract new capital, including from tourists, the publication said.
It should be noted that this is not the first Ripple Labs project of this kind. The company is also in talks to launch a new digital asset with authorities in Colombia and Montenegro.
The company is also in talks to launch a new digital asset with authorities in Colombia and Montenegro.