Palau Government Launches US Dollar-Backed Stablecoin Pilot on XRP Ledger

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On July 26, the government of Palau will commence a pilot project for a new United States dollar-backed stablecoin, set to be issued on the XRP Ledger. The Palau Stablecoin (PSC), also known as the Kluk, will be initially distributed to government employees after undergoing testing with volunteers making purchases using various devices.

The PSC is built on the Ripple CBDC Platform, which was introduced in May. Ripple had been in discussions with over 20 governments about central bank digital currency issuance at that time, and its partnership with Palau was announced back in 2021, with a targeted launch date in 2022.

Palau, a group of islands in the Pacific Ocean’s Oceania region, has a population of slightly over 18,000 and uses the US dollar as its national currency. The country already has a digital residency program and issues ID supported by Cryptic Labs, available as a nonfungible token on the Binance BNB blockchain, serving as a valid identification and Know Your Customer solution recognized by major international entities.

The Pacific island nations have been witnessing significant developments in the cryptocurrency space. For instance, the Republic of the Marshall Islands is preparing to launch its own CBDC and has legalized decentralized autonomous organizations (DAOs). Vanuatu has Satoshi Island, serving as a home for the crypto community. Tonga, too, had plans to introduce Bitcoin as legal tender but has experienced delays in its planned January 2023 launch.

Source: Cointelegraph