Palau authorities launched the second phase of the PSC stablecoin testing based on the Ripple platform

The first phase of piloting was successfully completed in September this year

18.12.2023 - 07:10

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The authorities of Palau are launching the second phase of testing their own Palau Stablecoin (PSC) pegged to the US dollar. In this phase, the Ministry of Finance intends to add new options for using the asset and expand its audience. Fintech company Ripple is again a partner in the program: the PSC is issued through its platform for creating central bank digital currencies (CBDC). The platform, launched in May, allows central banks, governments, and financial institutions to manage the full lifecycle of wholesale and retail CBDCs: issuance, distribution, redemption, and burning.

Source: Twitter.com

Palau Finance Minister Jau Hunter Anson said the project reflects the country’s commitment to innovate and modernize the financial system. Under the second phase of the PSC pilot, authorities will focus on building a robust digital ecosystem, connecting more users through educational initiatives, as well as integrating banks, and expanding asset availability while meeting regulatory requirements.

In the first phase of testing, which lasted from July to September, PSC was distributed to government employees. In a report, authorities called it a success based on feedback from 200 users who made more than 700 transactions with the asset.

According to Ripple advisor Antony Welfare, PSC allows for offline payments, even in cases of power outages and data loss, which is especially relevant for Palau. The state includes over 340 islands and fiat transactions are difficult there due to the high cost of mobile communications.

Standard Chartered’s crypto division partners with Ripple’s subsidiary

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In early November, the Central Bank of Georgia also selected Ripple as a partner for the national cryptocurrency project. At the same time, the Dubai regulator approved the XRP token issued by the company to offer related services to retail customers.

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