Palau’s government, Soramitsu, and the Japanese ministry produced a blockchain-based savings bond prototype to stimulate domestic investment.
In order to allow residents of Palau to engage in national infrastructure projects, the island nation is introducing a savings bond program based on blockchain technology.
This initiative was created with the Ministry of Economy, Trade and Industry of Japan and the blockchain startup Soramitsu.
The so-called “Palau Invest” program, according to a news release issued on Tuesday, October 8, aims to empower individuals by giving them a new way to engage in national initiatives and receive returns on their contributions.
The program is a component of METI’s “Global South Future-Oriented Co-Creation Project,” Japan’s commitment to aiding emerging economies through technology innovation. It is based on the Hyperledger Iroha 2-based network of the SORA v3 Hub Chain.Â
It is stated that the money raised by the digital savings bonds will go toward important infrastructure initiatives, including building public buildings, roads, and housing.
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.”
Prior to the official issuing of savings bonds, a public demonstration phase was initiated at the time of publication to acquaint citizens with the mechanism.
No specific date was given, but bonds will eventually be on sale via a mobile app letting people invest from their cellphones.
After implementing blockchain-based financial systems in the Asia-Pacific region, including central bank digital currency initiatives in Cambodia and Papua New Guinea, Soramitsu views this launch as another significant achievement in its ongoing efforts.
