Palau to Develop Blockchain System for Government Bonds

The Palauan government has formed a partnership with the Japanese FinTech firm Soramitsu to develop a DLT platform for the issuance and management of government bonds. The testing phase for the blockchain solution is set to commence in the current fiscal year, with a complete rollout anticipated in 2025.

Soramitsu, a Japanese technology company, has secured a contract to create a blockchain platform for the issuance and management of government bonds in Palau, as reported by local media outlets.

This platform will utilize distributed ledger technology (DLT) and enable the Pacific island nation’s government to issue bonds to individual investors, as well as oversee principal and interest payments. The project’s funding amounts to approximately 200 million yen (~$1.3 million). The initiative has garnered support from Japan’s Ministry of Economy, Trade, and Industry, while Japan’s Ministry of Foreign Affairs and Ministry of Finance will offer guidance to the Palauan government on project management once it becomes fully operational, expected in 2025.

Palau utilizes the U.S. dollar as its official currency and lacks its own bond platform. The majority of the 18,000 residents across the 340 islands rely on U.S. banks. The new platform will enable the government to leverage citizens’ savings to address public financing needs.

One year prior, the Palauan authorities, in collaboration with Ripple Labs, launched a stablecoin pegged to the U.S. dollar to enhance the accessibility of domestic payments.

Сообщение Palau to Create Blockchain Platform for Government Bonds появились сначала на CoinsPaid Media.