Pacific Island Nation of Palau Launches USD-Backed Stablecoin Pilot

The Palau Stablecoin, or "Kluk", will be minted on XRP Ledger using the Ripple CBDC platform and will be first distributed to government employees.

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The government of Palau is set to launch a pilot project for a US dollar-backed stablecoin on July 26. The new coin will be issued on XRP Ledger.

The country will distribute the first Palau Stablecoins (PSC) under the pilot project to government employees. This comes after several days of testing with volunteers to make purchases with various devices.

The PSC, nicknamed the Kluk, possibly due to its bird logo, is the latest project to run on the Ripple CBDC platform which debuted in May. Ripple claimed at the time to be in talks with more than 20 governments about central bank (CBDC) issuance of digital currency. The agreement with Palau, however, predates the new Ripple product. Ripple's partnership with Palau was announced in 2021, with a target launch date of 2022.

The Kluk. Source: Twitter, Jay Hunter Anson

Palau spans a group of islands in the Pacific Ocean region of the Pacific Ocean. It has just over 18,000 inhabitants and uses the US dollar as its national currency.

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