Palau Launches Second Phase of CBDC Pilot Program on XRPL Platform
Date: 2023-12-16 Author: Dima Zakharov Categories: BLOCKCHAIN, BUSINESS
Palau Advances to Second Phase of PSC CBDC Program
As announced by Jay Hunter Enson, a cybersecurity consultant in the Republic of Palau, the country's Ministry of Finance officially launched the second phase of its CBDC pilot program yesterday.
According to Enson, the Republic of Palau will continue its partnership with Ripple in this second phase. Consequently, the PSC team will utilize both Ripple's CBDC platform and the company's technical expertise.
Furthermore, Enson stated that the second phase of the PSC pilot program will lead to new collaborations in marketing and sustainable development goals.
Notably, the focus of the second phase of the PSC program will be on developing a secure digital ecosystem and expanding user participation while adhering to regulatory requirements.
Reaction from Ripple CBDC Advisor
Anthony Welfare emphasized the benefits of blockchain-based digital currency, including low transaction fees and reduced carbon emissions associated with financial flows.
Welfare noted that Palau residents can make offline payments during power outages using blockchain-based digital currency like PSC.
For context: PSC is a digital currency pegged to the US dollar and backed 1:1 by USD. The USD backing PSC is stored in a FDIC-insured commercial bank. PSC operates on the XRP Ledger (XRPL).
PSC, Phase 1
In the first phase, which lasted three months, the Ministry of Finance recruited 168 volunteers from among government officials.
Selected volunteers were given 100 PSC each, which they could spend at participating local retail stores. Participants made payments by scanning QR codes using their mobile phones.
Interestingly, participating retailers and volunteers provided positive feedback about their experience with digital currency.
