Palau has launched a blockchain-based platform that allows citizens to invest in government bonds through an easy-to-use app. Ripple’s collaboration with Palau will introduce a stablecoin pegged to the US dollar to improve financial inclusion and transaction efficiency.
Palau has launched Palau Invest, a blockchain-based platform that allows citizens to digitally invest in government bonds.
Developed in partnership with Japan’s Soramitsu and supported by Japan’s Ministry of Economy, Trade and Industry, the initiative aims to generate funds for national infrastructure projects such as small and medium-sized business development, road construction and housing.
BREAKING: 🇵🇼Palau launches blockchain platform to enable digital savings bonds, @ripple The idea is to create a dollar-pegged stablecoin for the people.
Palau has been working on a joint project with Ripple to launch a stablecoin pegged to the US dollar since 2021. 💥🇺🇸
Comment below &… pic.twitter.com/fhNyE1S1sO
— Good Morning Crypto (@AbsGMCrypto) October 9, 2024
Promoting accessibility and economic growth through blockchain technology
The platform aims to simplify the process and allow Palau’s 18,000 people to purchase bonds through a smartphone app. In a country where financial services have long been dominated by US-based institutions, Palau is embracing blockchain technology to foster openness, increase accessibility and drive economic development.
Built on open source, the Hyperledger Iroha 2 blockchain ensures a secure and effective digital financial ecosystem. Blockchain-based solutions are being adopted across the Asia-Pacific region, thanks to Japanese company Soramitsu, which is driving the initiative, including projects in Cambodia and the Solomon Islands.
The adoption of blockchain in government bond issuance is a step forward for Palau, which aims to modernize financial services and increase public participation in the economy.
Strengthening financial inclusion with a secure USD-pegged stablecoin
Apart from the bond platform, Palau has been working with Ripple since 2021 on another important blockchain project, a USD-pegged stablecoin. Built on Ripple’s XRP Ledger, this stablecoin aims to maintain a 1:1 peg to the US dollar.
Comprised of approximately 200 government employees and local businesses, the project has virtually completed its initial stages. Palau Stablecoin (PSC) aims to increase financial inclusion and reduce transaction costs by providing people with a secure and fast means of payment.
Under the supervision of the Palau Ministry of Finance, this mechanism ensures complete control over stablecoin issuance and redemption.
While Palau is exploring creative financial ideas, Ripple has become even better known around the world. According to CNF, Ripple has launched a payment system in Brazil with Mercado Bitcoin as its first customer in Brazil. This new payment system is recognized for offering worldwide access, perfect integration, and improved security.
