Palau Declares First Phase of Stablecoin Pilot a Success Results and Popularity of PSCThe pilot, which launched in
June 2023 with the involvement of
200 volunteers, used Ripple Ledger technology as a backbone for controlling wallet transactions. The
Ministry of Finance (MOF) of
Palau informed that more than
700 transactions were completed during this phase, with more than
400 being payments to retail merchants.
Positive Feedback from Participants and RetailersThe report states both participants and retailers had good experiences during the pilot and that
PSC was positively received as a digital payment system, even after facing opposition from some government officials.
Plans for Future PhasesWhile there is no explicit mention of a second phase for the
PSC pilot, the MOF stated that
“the long-term objective is to implement PSC nationally as a convenient and cost-effective way of payment,” hinting at the continuation of the project in the short term.
Improving Reach and ComplianceFor this objective, the pilot will aim to improve its reach, allowing more financial institutions, retail businesses, and individuals to participate in the payments network. The report also calls for the organization of educational campaigns to show the general public the benefits of using this digital cash alternative. Further, the
MOF declares that subsequent phases of the pilot will focus on compliance, given that the
PSC is a dollar-pegged digitized token.
The first phase of Palau's stablecoin pilot has shown promising results, with positive feedback from participants and retailers. As the project moves forward, the focus on improving reach and compliance, as well as establishing a legal framework for security and transparency, will be crucial for the successful implementation of PSC nationally.
