PALAU — The foray into the stablecoin space has seen a positive first phase in Palau, Jay Hunter Anson reported Thursday. The pilot program, which began in July 2023, involves the issuance of a US dollar-pegged stablecoin on the XRP Ledger. The initiative was tested in a controlled environment with volunteers from executive branch staff and local businesses.
Key points of phase 1 include:
- A total of 223 volunteers started the pilot, of whom 168 completed the phase.
- The stablecoin, known as PSC, is backed by USD cash collateral.
- Both volunteers and participating retailers gave positive feedback.
- There is a growing preference for using PSC as a national currency while awaiting government approval.
The successful completion of Phase 1 marks a significant step forward for Ripple and Palau in exploring digital currencies. The next stages of development will focus on expanding the ecosystem to include financial institutions, regulators, regulatory frameworks, businesses and users. This comprehensive approach aims to establish a robust stablecoin ecosystem in the country.