Palau Launches PSC Stablecoin on XRP Ledger

On July 26, the government of Palau will launch a pilot initiative for a stablecoin backed by the United States dollar. On the XRP Ledger, a new coin will be issued.

Government employees will receive the first Palau Stablecoins (PSCs) as part of the pilot program. This is the result of multiple days of testing in which volunteers made purchases with various devices.

The PSC, also known as the Kluk, is the most recent initiative to launch on the Ripple CBDC Platform, which debuted in May.

Ripple asserted at the time that it was in discussions with over 20 governments regarding the issuance of digital currencies by central banks.

However, the agreement with Palau predates the release of the new Ripple product.

The partnership between Ripple and Palau was announced in 2021, with an anticipated launch date of 2022.

The islands of Palau are located in the Oceania region of the Pacific Ocean. It has a population of just over 18,000 people and uses the U.S. dollar as its currency.

The country already has a digital residency program and issues IDs supported by Cryptic Labs that are available on the Binance BNB blockchain as nonfungible tokens.

The Root Name System ID for Palau is valid for identification and Know Your Customer purposes and is recognized by several prominent international organizations.

It costs slightly more than $20 monthly.

In recent years, Pacific island nations have been at the forefront of cryptographic innovation.

For instance, the Republic of the Marshall Islands has legalized decentralized autonomous organizations (DAOs) and is launching a CBDC.

Vanuatu is home to Satoshi Island, a “place for the crypto community to call home.” Tonga has announced plans to adopt Bitcoin as legal tender, although the country appears to have missed its January 2023 launch date.