For the first time, Palau has a test system for blockchain-based savings funds. This is a big step forward in the field of financial innovation. This project’s goal is to show people in the area a fresh way to save cash and get money for important building projects. The method was shown to the public after the sample was done.
The project has the support of the Soramitsu blockchain and the Ministry of Economy, Trade, and Industry of Japan. Its goal is to improve the country’s infrastructure by giving people access to money.
The Finance Ministry is working on making the rules for issuing bonds right now. The government will have to agree to this before it can happen. A phone app will make it easy for about 18,000 people in Palau to buy these bonds. President Surangel Whipps Jr. said this battle was very important because it would free up money for important projects like roads, homes, and the growth of small and medium-sized businesses. He said that projects like these not only improve infrastructure but also help the business in other ways.
In July, the bond project was first talked about. It should be fully up and running by 2025. The US dollar is used in Palau, which is an island country made up of 340 islands in the South Pacific. The country has never had a bond market before.
For Palau’s savings bonds, the Hyperledger Iroha 2 blockchain in the Sora v3 Hub Chain platform will be used. Soramitsu, the guy who made Iroha, gave this technology to the Linux Foundation Hyperledger Project and is still helping in important ways.
Besides Palau, Soramitsu has worked on a number of other projects in Southeast Asia. The Bakong currency in Cambodia and the DLak central bank digital currency proof-of-concept in Laos are two examples. Since 2021, Palau has also worked with Ripple to make a stablecoin that is backed by the US dollar. Several steps have been taken to make this project better.
The Root Name System (RNS) was also made by Palau and Cryptic Labs in early 2022. The country’s policy for digital residency is based on this method. A non-fungible coin is used with this way to check IDs using blockchain technology. In June 2022, it will be live on the BNB Chain.
The country thinks that Palau spend will change how it deals with money, make it easier for people to spend, and use new tools to grow its economy.
