A Palau government official has shared a live demonstration of the Palau stablecoin on the XRPL as the project enters a Phase One pilot in partnership with Ripple.
Jay Hunter Anson, the FinTech Project Manager at Palau’s Finance Ministry, recently shared a live demonstration of the Palau stablecoin (PSC)Â used on the XRP Ledger (XRPL). Anson shared the live demonstration following the first press release on the project’s pilot.
FAQ on the Palau Stablecoin
The Palau government official recently took to Twitter to answer some frequently asked questions on the stablecoin.Â
Republic of Palau ?? Stablecoin (PSC) Pilot Project FAQ
?? 1. What is the Palau Stablecoin (PSC)?
A stablecoin is a token that is fixed in value to another asset. The Palau Stablecoin (PSC) is a digital asset fixed in value to the U.S. Dollar. It can be used just like you use… pic.twitter.com/x0aVl1Vfew
— Jay Hunter Anson (@JHX_1138) July 26, 2023
He rightly emphasized that residents can use the stablecoin just as they use fiat currency but on a digital wallet. Being a US Dollar-backed stablecoin, the Palau stablecoin holds the same value as the dollar. It allows residents to spend the dollar with an e-wallet.
In addition, Anson shared a snapshot of the dedicated e-wallet for the Palau stablecoin.Â
Users can access the e-wallet at palau.ntls.io. However, one must insert an invite code for the onboarding after signing up to create a new account. This code is exclusively given to participants of the pilot.
Anson disclosed that the Palau government aims to make payments cheaper, faster, and easier with the stablecoin project. According to him, the government seeks to bring financial inclusion to everyone, especially individuals in remote areas.
He then shared a clip demonstrating the redemption of $15 using the stablecoin’s e-wallet on mobile. The clip showed that the transaction was executed in 7 seconds and involved the transfer of 15 PSC (equivalent to $15) to another address using the XRPL.
A closer look at the e-wallet reveals the Ripple brand at the top with a few functionalities. These functionalities include sending money, viewing one’s wallet address, bookmarking a recipient’s address, and checking transaction history.
Conclusively, Anson emphasized that the Palau stablecoin is indeed a cryptocurrency. However, he clarified that the government does not plan to make the country cashless with the stablecoin. According to him, the country can still use cash following the issuance.
Republic of Palau Stablecoin (PSC) Pilot Project FAQ
?? 3. Why does the Palau Ministry of Finance believe this is needed in Palau?
Â
The Palau Ministry of Finance has sponsored the Stablecoin project to explore ways to make payments easier and more affordable for the Republic of… pic.twitter.com/cA5YJjO8BX— Jay Hunter Anson (@JHX_1138) July 26, 2023
Phase One Pilot
Shortly after Anson’s demonstration, Ripple officially announced that the stablecoin had entered its Phase One pilot. Per the press release, the pilot involves willing government officials; Surrangel & Sons, a shopping mall in Palau; the Penthouse Hotel; and King’s Minute Mart, a grocery store in the country.
Ripple confirmed that Palau will leverage the Ripple CBDC platform for the stablecoin. During the pilot phase, the Palau Ministry of Finance holds control of the stablecoin, with the ability to mint and redeem tokens on the CBDC platform.
The participating individuals can use the stablecoin at select retailers. These retailers then can redeem the stablecoin for fiat currency to be sent to their local bank accounts.
Anson clarified that the Finance Ministry launched the pilot in March and has distributed the asset for the past three weeks. However, he confirmed that they recently made the first official press release.
Following Phase One, the government will embark on more pilot phases to evaluate stablecoin usage. These additional phases of the pilot will cater to more participants. Anson noted that the Ministry will assess the pilot after two months to confirm if it’s necessary to expand it.
The recent development comes a few days after Anson disclosed that the Ministry and Ripple had joined forces to mint the first Palau stablecoin. The Crypto Basic reported that this occurred at the National Capitol in Ngerulmud.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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