The Ministry of Finance in Palau has officially kickstarted the second phase of its Palau Stablecoin (PSC) initiative.
The news was confirmed by Jay Hunter Anson, a cybersecurity consultant in Palau who also serves as an advisor to the Ministry of Finance.
Anson made this announcement on December 15 through a post on the social media platform X (formerly known as Twitter).
In this new phase, Palau has set its sights on expanding its collaboration with Ripple, a leading blockchain technology company.
The goal is to leverage Ripple’s central bank digital currency (CBDC) platform and tap into their technical expertise. PSC is a digital currency that is pegged to the United States dollar and operates on Ripple’s XRP Ledger.
Furthermore, Anson revealed that the second phase of the PSC pilot program will focus on forging new partnerships for marketing and sustainable development goals.
Additionally, it will prioritize the creation of a digital ecosystem and increased user engagement, all while adhering to regulatory compliance standards.
Anthony Welfare, a CBDC strategic advisor at Ripple, also commented on the launch of the second phase of the PSC pilot program.
Welfare emphasized the advantages of blockchain-based digital currency, including reduced transaction fees and the potential to mitigate the environmental impact of currency circulation.
He also highlighted the unique challenges faced by Palau, such as the complexity of moving traditional currencies across its 340 islands and the high costs of mobile data in the country.
Welfare pointed out a notable feature of PSC: the ability for Palau residents to conduct offline transactions using this blockchain-based digital currency, even during power outages.
The Ministry of Finance in Palau had previously announced the success of the first phase of the PSC program on December 7.
This initial phase spanned three months and involved 168 volunteers who were government employees.
These volunteers were given 100 PSC each to use at local retailers that were part of the program.
Transactions were made through mobile phones by scanning QR codes.
Both the participating retailers and volunteers provided positive feedback regarding their experiences with this innovative digital currency.
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