The Republic of Palau, an island nation in the western Pacific, has decided to suspend its U.S. dollar-pegged stablecoin experiment initiated in August.
Ceasing Distribution
The Palauan government will stop distributing the Palau Stablecoin (PSC) as of September 8, according to Jay Hunter, a key member of the Palau Ministry of Finance and the leader of the digital residency program. Hunter shared this announcement on the X platform, formerly known as Twitter.
Stablecoin Spending Freeze
After the decision to halt distribution, the usage of the Palau Stablecoin will further be restricted. Starting September 15, PSC holders will no longer be able to transact using the stablecoin. Hunter elaborated, “Post September 15, the PSC will not be spendable, allowing us to handle retailer reimbursements prior to officially concluding the pilot at this month’s end.”
While the exact rationale behind the suspension wasn’t disclosed in Hunter’s statement, he did mention plans for the government to distribute a survey to those who participated in the pilot. This decision was made a few weeks after the official launch of PSC in late July.
Mapping the Future
The Palau government emphasizes the significance of feedback in shaping the stablecoin’s future. Hunter commented, “Should we get approval to continue the stablecoin project’s next steps, the insights we’ve gained will guide our path.” He further stressed the importance of user feedback in crafting the final report to be submitted to the Palau Congress and the head of state.
Source: https://blockchainreporter.net/palau-halts-usd-stablecoin-operations-on-xrp-ledger/