The government of Palau, a Pacific island nation, is testing a blockchain-based savings bond system to raise funds for critical infrastructure projects on the island.
Project backer Japanese blockchain solutions company Soramitsu said in a statement on Tuesday that a public review of the digital savings bond platform began this week, but no bonds have been issued. Funds raised from the bond will be used to build bridges, roads and other public infrastructure projects across Palau’s more than 300 islands.
“The savings bond initiative will allow us to finance critical projects such as housing, small business development and infrastructure with domestically sourced funds,” Palau President Slangel Whipps Jr. said in a statement Tuesday. Ta.
“By investing in these areas, we stimulate job creation, enhance business opportunities and foster a vibrant economy,” he added.
The platform runs on SORA v3 Hub Chain’s Hyperledger Iroha 2-based network. It was developed in collaboration with Japan’s Ministry of Economy, Trade and Industry (METI).
Palau aims to fully launch a digital savings bond system in 2025. Once the platform is operational, approximately 18,000 Palauans will be able to purchase bonds from the Palau Ministry of Finance using a mobile phone app.
It is unclear how long the public review of digital savings bond platforms will last. Neither Soramitsu nor Palau’s Ministry of Finance immediately responded to Decrypt’s requests for comment.
In addition to securing government approval before formally rolling out the digital savings bond platform, Palau’s Ministry of Finance will need to finalize the bond issuance criteria.
According to Soramitsu, Palau uses the US dollar as its national currency and does not have a bond platform at the time of publication.
Palau has so far stepped into the world of cryptocurrencies and blockchain technology. In 2021, the Palau government launched a Ripple and dollar-pegged stablecoin project. And in July, the country began implementing digital resident ID in Solana.
Edited by Andrew Hayward
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