Ripple partnered with the Republic of Palau on a U.S. dollar-backed stablecoin pilot. The stablecoin will be minted on the XRP Ledger and will be distributed first to Palau government employees.
"Partnering with Ripple to help create our national digital currency is part of our commitment to lead in financial innovation and technologies, which will provide the citizens of Palau with greater financial access," Palau President Surangel Whipps Jr said, according to a press release.
Palau's pilot project involves an initial distribution of the U.S. Dollar-backed Palau Stablecoin (PSC) to government employees. The PSC has been nicknamed 'Kluk' and will be deployed on the XRP Ledger (XRPL), using Ripple's Central Bank Digital Currency (CBDC) Platform.
"The Republic of Palau Stablecoin (PSC) aka 'Kluk' is a prototype digitization of the US Dollar under development in partnership with Ripple, using the XRPL blockchain. If successful, the PSC limited and controlled pilot could revolutionize the way goods and services are paid for in Palau," Palau ministry of finance Jay Hunter Anson said on Tuesday.
Ripple launched its CBDC Platform in May, describing it as a "full-service platform allowing users to seamlessly mint, manage, transact and redeem CBDCs and stablecoins." Palau's stablecoin pilot is the latest project to run on the platform. Ripple has claimed it is now working with over 20 governments across the globe on CBDC projects.
Ripple Labs and the Republic of Palau are scheduled to issue a joint press release about the pilot on Thursday, 9:00 a.m. Palau Time (PWT).
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