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Palau Finishes Distribution Phase of Stablecoin Pilot, Organizes Feedback Survey

Palau Finishes Distribution Phase Of Stablecoin Pilot, Organizes Feedback Survey

Palau is preparing to close the distribution phase of its stablecoin pilot after having extended it for 30 additional days to examine additional use cases and growing popular demand. Palau Ministry of Finance board member Jay Hunter Anson explained that the pilot was a “temporary, research and development pilot,” and that the entity will now compile data to deliver a report to the government.

Palau Concludes Stablecoin Pilot Distribution Phase

Palau has informed about the completion of the distribution phase of its first stablecoin pilot, prompting users to spend their Palau Stablecoins (PSC) before September 15, when they will be frozen. Jay Hunter Anson, a board member of Palau’s Ministry of Finance, thanked the participants in this first phase and explained the steps the organization will follow.

The pilot will officially conclude at the end of the month, and the last 15 days of September will be dedicated to working with merchants as part of the pilot to organize redemptions of the collected tokens.

Hunter Anson detailed that the pilot, which was originally scheduled for 60 days, was extended for 30 days more to examine new use cases due to popular demand. However, he stressed that the initiative was a “temporary, research and development pilot,” and that they will now compile a report to be delivered to the government leadership, that will include “recommendations for the next pilot and also requirements for a full production program.”

Hunter Anson explained that a survey will be sent to project participants, stating:

Next week we will send a survey to everyone who participated in the pilot. Please complete the survey as soon as possible. Your feedback is critical to developing our final report to the Olbiil Era Kelulau and the President.

Next Steps

Hunter Anson stressed that the government was looking forward to continuing its partnership with Ripple to refine its stablecoin’s design. The pilot included the participation of about 200 government employees and local merchants in Palau and used Ripple’s Central Bank Digital Currency (CBDC) platform to issue PSC on top of the XRP Ledger.

While there is still no information on the continuation of the project, Hunter Anson shared a timeline that hinted at a possible second pilot slated for November 2023, aligned with the holiday season. In another post, he detailed:

If we are authorized to move forward with the next phase of the stablecoin program, our collective lessons learned will shape the way ahead.

What do you think about Palau’s stablecoin project? Tell us in the comments section below.

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