Ripple and the Republic of Palau have come together for a pilot project involving a U.S. dollar-backed stablecoin. This stablecoin, known as the Palau Stablecoin (PSC) or ‘Kluk,’ will be created on the XRP Ledger and initially distributed to government employees.
The partnership is seen as a significant step towards financial innovation and enhanced financial access for the citizens of Palau. President Surangel Whipps Jr expressed this commitment in a press release, highlighting the potential benefits of this digital currency initiative.
The PSC, developed in collaboration with Ripple, aims to digitize the US Dollar and is deployed using Ripple’s Central Bank Digital Currency (CBDC) Platform. If successful, the limited and controlled pilot of the PSC could bring transformative changes to payment methods for goods and services in Palau, according to Jay Hunter Anson from the Palau Ministry of Finance.
Ripple introduced its CBDC Platform earlier, offering a comprehensive solution for minting, managing, transacting, and redeeming CBDCs and stablecoins. Palau’s stablecoin pilot represents the latest endeavor to leverage this platform, adding to Ripple’s involvement in CBDC projects with over 20 governments globally.
A joint press release by Ripple Labs and the Republic of Palau is set to be issued on a specified date and time, detailing further insights into the pilot’s progress.
Ripple seeks payment institution license in Ireland
Ripple is currently seeking a payment institution license in Ireland and a crypto asset firm license from the UK’s Financial Conduct Authority (FCA). This move comes in the wake of a partial SEC victory in a high-profile case. In June 2023, the FCA granted registration to Bitstamp as a digital asset company, while other notable companies like MoonPay, Wintermute Trading, and eToro have also completed their registrations.
However, Ripple’s pursuit of licensing in Ireland faces potential challenges. Payment companies in Ireland require approval from the central bank, and in a blog post in May, the governor, Gabriel Makhlouf, expressed some skepticism.
While Ripple maintains that its payment solutions and XRP cryptocurrency are separate entities, their association may pose obstacles during the licensing process.
Source: Read Full Article