Palau’s government in partnership with Soramitsu and Japan’s ministry has launched a blockchain-based savings bond prototype aimed at enhancing domestic investment growth.

Palau is launching a blockchain-based savings bond system developed in collaboration with Japanese blockchain firm Soramitsu and Japan‘s Ministry of Economy, Trade and Industry to provide citizens with investment opportunities in domestic infrastructure projects.

In a Tuesday press release on Oct. 8, Soramitsu said the so-called “Palau Invest” initiative seeks to empower citizens by providing them with a new means to invest in national projects while earning yields from those investments.

Based on the SORA v3 Hub Chain’s Hyperledger Iroha 2-based network, the program is part of METI’s “Global South Future-Oriented Co-Creation Project,” Japan’s commitment to supporting emerging economies through technological innovation. Funds generated from the digital savings bonds are said to be allocated for critical infrastructure projects such as housing, roads, and public facilities.

President of Palau Surangel Whipps, Jr. highlighted the initiative’s significance, saying it can help “stimulate job creation, enhance business opportunities, and foster a vibrant economy.”

As of press time, a public demonstration phase has been launched to familiarize citizens with the savings bond system before formal issuance begins. Once finalized, bonds will be available for purchase through a mobile app, allowing citizens to invest from their smartphones, though no exact timeline was revealed.

For Soramitsu, this launch represents another milestone in its efforts, having previously implemented blockchain-based financial systems in the Asia-Pacific region, including central bank digital currency initiatives in Cambodia and Papua New Guinea.

Source : crypto.news - Oct 8, 2024