Palau to freeze USD-backed stablecoin after pilot launch in July
Palau's USD-backed stablecoin build on XRP Ledger will be frozen on Sept. 15 as the government will be collecting feedback from users to shape the way ahead.
Palau, a country in the western Pacific Ocean, is wrapping up its U.S. dollar stablecoin project after launching the pilot in August.
Jay Hunter, Palau Ministry of Finance member and head of digital residency program, took to X (formerly Twitter) to announce that the government will cease the distribution of the Palau Stablecoin (PSC) on Sept. 8.
Following the distribution halt, the Palau Stablecoin will also be frozen after Sept. 15, becoming unavailable for spending by users, Hunter said, noting:
“After Sept. 15 you will no longer be able to spend the PSC. This will give us time to process retailer redemptions before the pilot’s official termination at the end of the month.”
In the announcement, Hunter didn’t provide exact reasons for freezing the stablecoin, only noting that the government will send a survey to pilot participants next week. The move came weeks after the government launched the PSC in late July.
“If we are authorized to move forward with the next phase of the stablecoin program, our collective lessons learned will shape the way ahead,” the official said. He added that users' feedback would be critical to developing the final report to the Palau Congress and the president.
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