The Ministry of Finance of Palau has officially launched the second phase of the Palau Stablecoin (PSC) program. This phase aims to enhance the digital currency’s utility and reach by prioritizing the development of a digital ecosystem and increasing user engagement, while ensuring adherence to regulatory compliance.
Jay Hunter Anson, a cybersecurity consultant in Palau and adviser to the Ministry of Finance, confirmed the second phase’s launch. He mentioned that Palau plans to expand its partnership with Ripple during this phase, leveraging Ripple’s central bank digital currency (CBDC) platform and technical expertise. The PSC is a digital currency pegged to the United States dollar and operates on Ripple’s XRP Ledger.
Anson emphasised that the focus of the second phase would involve establishing new collaborations for marketing and sustainable development goals. Anthony Welfare, CBDC strategic adviser at Ripple, shared his perspective on the launch, highlighting the advantages of blockchain-based digital currency like PSC. He cited benefits such as reduced transaction fees and the potential to address the environmental impact of traditional money circulation. Additionally, Welfare pointed out that Palau residents can conduct offline transactions using PSC, even during power outages.
The successful completion of the first phase of the PSC program was announced on December 7. This initial phase, which lasted three months, involved 168 volunteers from government employees. They each received 100 PSC to use at participating local retailers, making payments through their mobile phones by scanning QR codes. The feedback from both the participating retailers and volunteers was overwhelmingly positive.
