Palau’s Blockchain Milestone: XRPL Powers Phase 2 of Stablecoin Project and Ripple Partnership Expansion

The Ministry of Finance in Palau has started the second phase of its Palau Stablecoin (PSC) program. Jay Hunter Anson, a cybersecurity consultant and adviser to the Ministry of Finance, announced the launch on December 15 on social media. Palau is making progress in developing its stablecoin, and the XRP Ledger (XRPL) plays a key role in its implementation.

Palau is continuing its partnership with Ripple in the second phase of its Palau Stablecoin (PSC) program. This phase involves using Ripple’s central bank digital currency (CBDC) platform and expertise. The PSC is a digital currency linked to the U.S. dollar and operates on Ripple’s XRP Ledger.

In addition to technical advancements, the focus of phase two includes forming new partnerships for marketing and sustainable development goals. The project aims to build a digital ecosystem, enhance user engagement, and ensure compliance with regulations. The Palau PSC stablecoin is a token pegged to the U.S. dollar (1:1) and is stored in a Federal Deposit Insurance Corporation (FDIC)-protected commercial bank.

The first phase, which lasted three months, included 168 government employee volunteers who completed over 700 transactions. They used 100 PSC each at local retailers, making payments via mobile phones by scanning QR codes. The positive feedback from this phase led to the expansion of the program.

In the upcoming phase, Palau aims to build a strong digital ecosystem, increase accessibility, and encourage more users to participate while ensuring compliance with legal and regulatory standards. Additionally, residents can conduct transactions offline using PSC, even during power outages.

Role of XRPL

Innovative Opportunities with Blockchain: The utilization of the XRP Ledger (XRPL) in the second phase of the Palau Stablecoin project is seen as a catalyst for innovation and efficiency. By employing a blockchain-based digital currency, the project aims to reduce transaction fees, minimize the carbon footprint of financial flows, and enhance financial inclusion by eliminating the need for a bank account.

Overcoming Infrastructure Challenges in Palau: Palau, with its 340 islands, faces logistical challenges in transferring fiat currency. Online transactions are hindered by the high cost of mobile data. XRPL provides a solution by simplifying transactions for Palau residents, offering the capability for offline transactions. Even in the event of power or data outages, XRPL ensures that transactions can still be executed.

 XRPL’s Resilience and Upgrades: The robust features of XRPL make it a preferred choice for projects integrating blockchain technology. Its offline transaction capability is particularly valuable in regions with unpredictable infrastructure. XRPL continues to evolve with recent upgrades, such as the introduction of “fixReducedOffersV1” aimed at addressing key issues with decentralized exchange (DEX) offerings. The successful closure of its 84th millionth ledger reflects XRPL’s strong infrastructure and growing ecosystem.

Role in Ripple Labs Ecosystem: As part of the Ripple Labs ecosystem, XRPL plays a significant role in advancing the firm’s central bank digital currency (CBDC) vision. Its contributions are considered noteworthy, and the protocol is positioned as a game-changer in the evolving landscape of blockchain technology.


The use of XRP Ledger (XRPL) in Palau’s Stablecoin project brings innovative solutions to challenges. It helps reduce transaction fees, lowers the carbon footprint, and promotes financial inclusion without the need for a bank account. In Palau’s island setting, where moving fiat currency is difficult, XRPL simplifies transactions, especially with its offline capabilities during power or data outages. The recent upgrades demonstrate XRPL’s commitment to improvement. As part of Ripple Labs’ ecosystem, XRPL plays a crucial role in advancing the vision of central bank digital currencies (CBDCs), making it a significant player in the evolving blockchain landscape.

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