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Palau Partners with Ripple to Create Dollar-Pegged Stablecoin

2 months ago
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  • Palau has launched a new blockchain-based savings bonds prototype system in partnership with Soramitsu and Japan’s Trade and Economy Ministry.
  • Palau has previously partnered with Ripple to deploy a stablecoin on the XRP ledger, culminating in the first CBDC transaction on XRPL.

Palau, an island country in the western Pacific Ocean, has launched a new blockchain-based bond in partnership with Japanese blockchain firm Soramitsu.

The country, with a population of less than 20,000 people, has been one of the world’s most active in exploring blockchain solutions for its people, whose economy depends on tourism. In 2021, it partnered with Ripple on a dollar-pegged stablecoin on the XRP Ledger that was successfully launched late last year.

The new bond prototype, named Palau Invest, was also supported by Japan’s Ministry of Economy, Trade, and Industry (METI). It allows Palauans to invest in the development of their country and earn returns. The funds that the government will raise from this bond will go to national projects, including the construction of roads and bridges to spur economic development.

Currently, the bond is only a prototype, allowing citizens to familiarise themselves with it before it officially launches. Once it launches officially, citizens can buy it easily and conveniently via a mobile app. It was issued on Iroha 2-based network, Soramitsu’s implementation of the Hyperledger blockchain network.

Commenting on the new bond prototype, Palau’s president, Surangel Whipps Jr., noted that it would help his government to fund crucial projects like housing, SME development, and infrastructure with domestically sourced capital. By investing in these areas, we stimulate job creation, enhance business opportunities, and foster a vibrant economy.”

He added:

This initiative represents a broader effort by Palau to take greater control of its financial future – one where we determine the direction of our development and invest directly in our nation’s growth.

Kaleb Udui Jr., the Finance Minister, added that the bond is part of a longer-term initiative by the government to strengthen the country’s financial systems and improve investment opportunities for the populace.

Besides funding government initiatives, the new bond prototype is also intended to keep Palauans’ money in the country. Traditionally, the savings banks that Palauans use remit their deposits to the US, where they are used to develop the country through credit facilities, leaving Palau scrambling for funds for national development.

Soramitsu, which developed the bond prototype, is vastly experienced in national blockchain projects. It has previously worked with the governments of Cambodia and the Solomon Islands; with the former, it developed the Bakong, the first-of-its-kind blockchain-powered retail payments and large-scale quasi CBDC.

Palau Explores XRP

In one of its most advanced blockchain projects, Palau partnered with California blockchain payments firm Ripple to deploy a dollar-pegged stablecoin on the XRP ledger. As we reported, this partnership morphed into a CBDC project. A few months ago, the first stablecoin transactions using a CBDC on the XRP ledger were completed in the island nation.

XRP trades at $0.5355, gaining 1.3% in the past day and 2.5% in the past week for a $30.327 billion market cap.

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Source: https://www.crypto-news-flash.com/palau-partners-with-ripple-to-create-dollar-pegged-stablecoin-and-digital-savings-bonds-platform/?utm_source=rss&utm_medium=rss&utm_campaign=palau-partners-with-ripple-to-create-dollar-pegged-stablecoin-and-digital-savings-bonds-platform