Written by Hazel J. Greene, Senior Analyst

The Republic of Palau has partnered with Ripple Labs to introduce its very own stablecoin, the Palau Stablecoin (PSC). The Director of Palau’s Digital Residency Program and a member of Palau’s Ministry of Finance, Jay Hunter Anson, took to Twitter to announce this significant collaboration between the Palau National Treasury and Ripple Labs.

The launch event took place at the National Capitol in Ngerulmud, Palau, where representatives from both the Palau National Treasury and Ripple gathered to celebrate the successful debut of the Palau Stablecoin. Anson emphasized that this marks a crucial milestone in their joint exploration of the stablecoin’s potential use cases within Palau.

Anson tweeted, “The PSC launch is an important milestone in our collaboration with Ripple, as we work together to explore the possibilities of this stablecoin in specific use cases within our country. We have received explicit approval from the Palau Congress, giving the PSC pilot program an official stamp of legitimacy.”

Palau’s Ministry of Finance initiated the Stablecoin project with the aim of addressing specific needs within the nation’s financial landscape. By sponsoring this project, the ministry seeks to reduce payment costs and improve access to financial services, especially for underserved communities and various socio-economic groups, using digital solutions.

Notably, the Palau Stablecoin operates on the XRP Ledger (XRPL), showcasing Ripple’s technology as the backbone of this financial initiative.

Anson’s tweets also shed light on the meticulous development process behind the Palau Stablecoin. Carefully controlled and limited pilot tests are being conducted to assess the effectiveness and efficiency of the solution, which was co-designed with Ripple. These pilot experiments provide valuable insights into the stability and usability of the Palau Stablecoin before its potential public release.

“Our controlled pilot tests have been enlightening, and we are optimistic about the potential impact of the Palau Stablecoin on our nation’s economy,” Anson stated.

The Palau Stablecoin pilot program has already witnessed active participation from volunteer users during the testing phase. Videos shared by Anson on Twitter showcased smooth transactions at partner vendors in Palau, promptly confirming the transaction receipts.

The successful implementation of the Palau Stablecoin pilot program has caught the attention of the XRP community, creating anticipation for the official joint press release scheduled on July 27, at 9:00 AM Thursday morning in Ngerulmud, Palau, as revealed by Anson.

It is noteworthy that in December of last year, Ripple and the Republic of Palau entered into their partnership. As the island state lacks a functioning central bank, the US dollar is widely recognized as the primary medium of exchange throughout the country.

The creation of a USD-backed stablecoin is seen as a result of the national stablecoin initiative. In his remarks, the President described this as a “step towards our own central bank digital currency.”

At the time of writing, XRP was trading at $0.6870, slightly above the 23.6% Fibonacci retracement level at $0.6862. It is crucial for XRP bulls to defend this support level at all costs as it will unlock new upward momentum upon a successful close.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.