Palau, a rustic in the western Pacific Ocean, is wrapping up its United States greenback stablecoin challenge after launching the pilot in August.
Jay Hunter, a Palau Ministry of Finance member and head of the digital residency program, took to X (previously Twitter) to announce that the federal government will cease the distribution of the Palau Stablecoin (PSC) on Sept. 8.
Following the distribution halt, Palau Stablecoin may also be frozen after Sept. 15, turning into unavailable for spending by customers, Hunter mentioned, noting:
“After Sept. 15, you will no longer be able to spend the PSC. This will give us time to process retailer redemptions before the pilot’s official termination at the end of the month.”
In the announcement, Hunter didn’t present actual causes for freezing the stablecoin, solely noting that the federal government will ship a survey to pilot members subsequent week. The transfer got here weeks after the government launched PSC in late July.
“If we are authorized to move forward with the next phase of the stablecoin program, our collective lessons learned will shape the way ahead,” the official mentioned. He added that customers’ suggestions can be crucial to growing the ultimate report for the Palau Congress and the president.
The information comes shortly after Hunter posted a research devoted to stablecoin expertise and associated safety concerns from the National Institute of Standards and Technology. Issued in September, the research evaluated among the vital properties of safety and stability and recognized “18 potential issues in stablecoin implementations.”
Stablecoins are a sort of cryptocurrency that goal to preserve a steady value relative to a specified asset (normally a fiat foreign money).
Much has been written about how to use stablecoins and concerning the financial implications of doing so, particularly value variability. However,… pic.twitter.com/Hek7tUqXZR
— Jay Hunter Anson (@JHX_1138) September 5, 2023
Nicknamed the Kluk, Palau Stablecoin is designed to scale back transaction prices and improve the velocity of transfers for residents, retailers and the federal government of Palau. The stablecoin was constructed on Ripple’s XRP Ledger, a platform targeted on the issuance of central financial institution digital currencies (CBDC).
The XRP Ledger CBDC platform additionally serves as the muse for related pilot tasks in international locations akin to Hong Kong, Bhutan, Colombia and Montenegro.