The Republic of Palau collaborates with Ripple to launch a government-backed stablecoin on XRP Ledger

Stablecoin issuer and blockchain service provider Ripple has announced the pilot launch of Palau Stablecoin (PSC), backed by the U.S. Dollar, issued on XRP Ledger (XRPL).

Phase One pilot marks an important milestone in the collaboration between the blockchain company and the government of the Western Pacific island state ?– the Republic of Palau. Palau started working with Ripple on the stablecoin project back in 2021, now finally reaching the implementation stage.

The new stablecoin will be first used by government employees to transact with select local merchants in Palau. Local merchants who signed up for the pilot project include Surrangel and Sons, The Penthouse Hotel and King’s Minute Mart. They will be accepting the Palau Stablecoin as a payment means during the initial phase.

According to Jay Hunter Anson, FinTech? Project Manager for the Palau Ministry of Finance, ”The Palau Stablecoin offers a “fee-free” secure, transparent, and convenient option for payments that is more efficient than other online payment services.”

“By digitizing our currency, we hope to mobilize our economy and government processes to accelerate financial transitions and empower our citizens,” believes the President of the Republic of Palau, S. Whipps Jr.

Ripple is responsible for the technical part of the project, providing its CBDC end-to-end issuance platform, specifically designed for central banks to issue their own central bank digital currencies. The technology enables Palau to manage and customize the entire life cycle of its national stablecoin, as well as transactions, distribution and redemption.

Earlier, in June,?Colombia’s Central Bank also chose Ripple to be its CBDC Pilot partner.