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Pilot Project for New Dollar-Backed Stablecoin to Begin in Palau
From July 26, the Palau government is planning to initiate a pilot project involving a stablecoin backed by the United States dollar. The novel coin will be introduced on the XRP Ledger.
The Debut of Palau Stablecoins (PSCs)
The inaugural Palau Stablecoins (PSCs), intriguingly referred to as the Kluk, perhaps due to its avian logo, will be released to government workers in the pilot scheme. The Kluk represents the latest project to be launched on the Ripple CBDC Platform introduced in May. At its inception, Ripple stated it was engaging with over 20 governments regarding the issuance of central bank digital currencies. This partnership between Ripple and Palau had been revealed in 2021, aiming for a 2022 launch, prior to the launch of the new Ripple product.
Palau’s Crypto Initiatives
Palau, a collection of islands in the Oceania region of the Pacific Ocean with a modest population exceeding 18,000, employs the U.S. dollar as its chief currency.
The country already operates a digital residency program and endorses ID backed by Cryptic Labs, accessible as a nonfungible token on the Binance BNB blockchain. The Palau Root Name System ID is accepted for identification and KYC objectives by several major global entities, and it costs slightly above $20 per month.
The Rise of Crypto in Pacific Island Nations
Small island nations in the Pacific have lately been the cradle of crypto advances. For instance, the Republic of the Marshall Islands is kick-starting a CBDC and has greenlit decentralized autonomous organizations (DAOs). Satoshi Island, the 'homeland' of the crypto community is hosted by Vanuatu. Tonga had announced intentions to adopt Bitcoin as legal tender, although its planned launch in January 2023 seems to have been postponed.
