The Palau Ministry of Finance confirms the progress in the development of Palau Stablecoin (PSC).
Despite the announcement, the price of XRP has fallen over the past week.
The Ministry of Finance of the Republic of Palau, a small nation in the Pacific Ocean, has launched Phase 2 of the Palau Stablecoin (PSC) program. This was reported by Jay Hunter Anson, the cybersecurity consultant who is part of this initiative.
The program consists in the development of a stablecoin as a digital central bank currency (CBDC), which maintains price parity with the US dollar. This is done via the CBDC platform offered by Ripple.
Anson explained that Phase 2 of the program “will focus on building a robust digital ecosystem, expanding accessibility and user engagement, with an emphasis on legal and regulatory compliance.”
This, he explained, included engaging financial institutions, legal and regulatory compliance, regulators, legal frameworks, businesses and users in the initiative. All of this, as already mentioned, is to ensure the security and transparency of transactions that meet international standards.
He also noted that Phase 2 will see new collaboration on Palau's marketing, sustainability goals and environmental initiatives.
“The Palau Stablecoin Program represents a significant step towards a digitalized future and demonstrates the country’s commitment to innovation and financial modernization.”
Jay Hunter Anson, cybersecurity consultant.
These statements come against the backdrop of concerns about CBDCs in the world, as these currencies allow governments to monitor citizens' financial movements, freeze their funds or automatically debit payments. Such aspects contradict the values of privacy and self-custody that, among other things, gave rise to Bitcoin (BTC), the main digital currency.
XRP price has fallen
Despite announcements about progress on the Republic of Palau CBDC The price of Ripple’s cryptocurrency XRP fell slightly from $0.66 to $0.61 during the last 7 days. There was no positive market reaction to the news.
XRP’s price movement paralleled that of Bitcoin, which fell from $43,800 to $41,000 over the same period. This can be seen in the graphic below TradingView.
This scenario comes as the Bitcoin market seeks support after hitting $44,000 last week, its high in 18 months. As CriptoNoticias reports, this situation has impacted cryptocurrency prices, although some have continued to rise.