The government of Palau, a small island nation in the Asia-Pacific region with a population of about 18,000 people, has introduced a prototype blockchain savings bond system called "Palau Invest." The prototype was presented following an announcement that the Japanese fintech company Soramitsu is developing this system using blockchain technologies with the support of the Japanese government.
Soramitsu stated that the prototype was created to demonstrate to the citizens of Palau how the digital bond system could work. This will allow the country's residents to familiarize themselves with the new technology before the official issuance of bonds, which is planned by Palau's Ministry of Finance. After the bond issuance criteria are approved by the government of Palau, citizens will be able to purchase them through a mobile app, providing a simple and convenient investment opportunity for the country's development.
Palau's Minister of Finance, Kaleb Udui Jr., noted that the launch of this system is an important part of the country's efforts towards financial inclusion and innovation, expanding citizens' access to new financial tools. Palau's President, Surangel Whipps Jr., emphasized that this project will help fund key infrastructure projects within the country, creating jobs and stimulating economic development.
According to Soramitsu, blockchain technology will reduce operational costs and prevent fraud, increasing the system's security.
