Palau Advances CBDC with Ripple in Phase 2 of PSC Program Launch
The Palau Ministry of Finance has officially launched the second phase of the Palau Stablecoin (PSC) program. Jay Hunter Anson, a Palau-based cybersecurity consultant and Treasury advisor, confirmed the launch of Phase 2 of the program on December 15 in a post on X (formerly Twitter).
anson said Palau aims to expand its partnership with Ripple in Phase 2, allowing the PSC team to leverage Ripple’s central bank digital currency (CBDC) platform and technical expertise.
PSC is a digital currency pegged to the US dollar using Ripple’s XRP Ledger.
Anson also emphasized that the focus of the second phase of the PSC pilot program will be building new collaborations for marketing and sustainable development goals. Phase 2 of the PSC program will prioritize digital ecosystem development and increased user engagement, with an emphasis on regulatory compliance.
Yesterday, the Ministry of Finance of the Republic of Palau officially launched Phase 2 of the Palau project. #Stablecoin (PSC) program is based on 1:1 tokenized US dollars.
Republic of Palau #Jae Won We seek to expand accessibility and user engagement to reach a wider audience. pic.twitter.com/FUt7mM8CLr
— Jay Hunter Anson (@JHX_1138) December 15, 2023
Anthony Welfare, CBDC Strategic Advisor at Ripple, also shared his thoughts on the launch of Phase 2 of the PSC pilot program.
welfare Emphasize It mentions the advantages of blockchain-based digital currency, including reduced transaction fees and the potential to address the environmental impact of currency circulation.
Ripple advisors also pointed to specific challenges, such as the complexity of moving traditional currencies across Palau’s 340 islands. Moreover, he pointed out that mobile data costs are high in the country.
Related: Ripple publishes whitepaper on CBDC and reiterates belief in its potential.
The Ministry of Health and Welfare mentioned that Palau residents can conduct offline transactions using blockchain-based digital currencies such as PSC even during power outages.
Palau’s Ministry of Finance announced on December 7 that the first phase of the PSC program was successful. The first phase, which lasted three months, involved 168 volunteers from civil servants.
Selected volunteers each received 100 PSCs to use at local retailers participating in the program. Participants scanned the QR code and paid with their mobile phones. Participating retailers and volunteers provided positive feedback about their experience using digital currency.
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