{"id":20247,"date":"2023-07-26T01:12:36","date_gmt":"2023-07-26T01:12:36","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/usd-backed-stablecoin-pilot-project-launched-by-pacific-island-nation-of-palau\/"},"modified":"2023-07-26T01:12:38","modified_gmt":"2023-07-26T01:12:38","slug":"usd-backed-stablecoin-pilot-project-launched-by-pacific-island-nation-of-palau","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/usd-backed-stablecoin-pilot-project-launched-by-pacific-island-nation-of-palau\/","title":{"rendered":"USD-backed stablecoin pilot project launched by Pacific island nation of Palau"},"content":{"rendered":"
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The government of Palau is set to begin a pilot project for a United States dollar-backed stablecoin on July 26. The new coin will be issued on XRP Ledger.<\/p>\n

The country will release the first Palau Stablecoins (PSCs) in the pilot project to government employees. This comes after several days of testing using volunteers to make purchases with various devices. <\/p>\n

The PSC, nicknamed the Kluk, possibly due to its bird logo, is the latest project to run on the Ripple CBDC Platform that debuted in May. Ripple claimed at that time to be in talks with over 20 governments about central bank digital currency (CBDC) issuance. The agreement with Palau predates the new Ripple product, however. Ripple\u2019s partnership with Palau was announced in 2021, with a target launch date in 2022.<\/p>\n

The Kluk. Source: Twitter, Jay Hunter Anson<\/em><\/figcaption><\/figure>\n

Palau is spread across a group of islands in the Oceania region of the Pacific Ocean. It has a population of slightly more than 18,000 and uses the U.S. dollar as its national currency. <\/p>\n

Related: Montenegro\u2019s central bank teams up with Ripple on digital currency pilot project<\/em><\/strong><\/p>\n

The country already has a digital residency program and issues ID supported by Cryptic Labs that is available as a nonfungible token on the Binance BNB blockchain. Palau\u2019s Root Name System ID is valid for identification and Know Your Customer purposes and is recognized by several major international entities. It costs just over $20 per month.<\/p>\n

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So far during this limited pilot we have successfully tested PSC with WebApp and Android Wallets (multiple OS versions and smartphone models). <\/p>\n

iPhone wallet app is coming soon<\/p>\n

\u2714\ufe0fMinted by Republic of Palau National Treasury
\u2714\ufe0fDistribution by Ministry of Finance
\u2714\ufe0fWallet to\u2026 pic.twitter.com\/I3Gvt9PV7X<\/a><\/p>\n

\u2014 Jay Hunter Anson (@JHX_1138) July 19, 2023<\/a><\/p><\/blockquote>\n

Pacific island nations have been a hotbed of crypto development in recent years. For example, the Republic of the Marshall Islands is launching a CBDC and has legalized decentralized autonomous organizations (DAOs). Vanuatu hosts the Satoshi Island \u201cplace for the crypto community to call home.\u201d Tonga announced plans to introduce Bitcoin as legal tender, although it seems to have missed its planned January 2023 launch. <\/p>\n

Magazine: Why are crypto fans obsessed with micronations and seasteading?<\/em><\/strong><\/p>\n