Palau to discontinue dollar-based stablecoin two months after launch News ▸ Ripple ▸ Stablecoins
Palau to discontinue dollar-based stablecoin two months after launch
The island nation announced it would end its stablecoin program by the end of September, roughly two months after rolling out the token in July.
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Updated: Sep. 7, 2023 at 4:02 pm UTC
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Palau will end the pilot program of its U.S. Dollar-backed stablecoin efforts later this month, according to a Sept. 7 post on X by Jay Hunter, the country’s head of digital residency.
Hunter revealed that the distribution of the Palau Stablecoin (PSC) will cease by this Friday, Sept. 8. He advised holders of the asset to utilize their tokens before Sept. 15, after which they cannot spend them.
He added that the deadlines have been implemented to give the authorities more “time to process retailer redemptions before the Pilot’s official termination at the end of the month.”
Hunter did not provide specific details regarding the suspension of the stablecoin. However, he mentioned that the country intends to distribute a survey to participants in the coming week. This survey will be the basis for submitting a report to the Palau Congress and the President.
He added:
“If we are authorized to move forward with the next phase of the Stablecoin program, our collective lessons learned will shape the way ahead.”
Palau rolled out the stablecoin in July. At the time, Hunter said the stablecoin would revolutionize the way goods and services are paid for in the country.
Notably, the stablecoin operates on the Ripple-backed blockchain network, XRP Ledger, which has seen increased adoption across different countries due to its novel technology for Central Bank Digital Currencies (CBDCs).
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