In partnership with Japan, the Palau government has developed a blockchain technological system to introduce a savings bond identified as Palau Invest. This initiative represents a step towards developing a financial environment in the country where people can invest in its advancement.
In collaboration with Soramitsu Co. Ltd and METI, the platform is under Japan's "Global South Future-Oriented Co-Creation Project" initiative. They include using advanced tech to strengthen the financial sectors in the new economy, such as the Palau economy.
The savings bonds system allows Palauans to directly contribute to their nation's growth while earning returns on their investments. This new financial tool is expected to be key in funding various national projects to enhance infrastructure and public welfare.
Palau Invest provides an accessible means for citizens to contribute to critical national projects, such as infrastructure upgrades and small business development. The capital raised from these savings bonds will be allocated to vital areas, including housing, bridges, and road construction. This will create jobs, stimulate business opportunities, and fuel economic development.
The President of the Republic of Palau, President Surangel Whipps Jr, stated the need for this provision as a way of enhancing the growth of the economy in Palau. He added that the funds will be locally mobilized thus decreasing external funding while at the same building a stronger economy. Palau aims to revitalize the employment of its human capital, as well as provide opportunities for economic growth and development to SMEs and infrastructure to achieve long-term advancement.
Minister of Finance Kaleb Udui Jr. highlighted the broader financial reform efforts that accompany the launch of Palau Invest. The creation of this online portal is consistent with continuous efforts to develop the nation's financial structures and enhance the diversification of investment opportunities for every citizen of Palau. It remains in the public free trial stage, where people can practice with the platform before the bond is issued.
Palau Invest operates on the SORA v3 Hub Chain's Hyperledger Iroha 2-based network, an open-source blockchain platform known for its efficiency and cost-effectiveness. This technology enables secure and transparent handling of financial transactions, ensuring that Palau's bond issuance process is efficient and accessible to a broad audience.
Soramitsu, the company behind Palau Invest's technological development, has a history of implementing blockchain-based financial solutions across the Asia-Pacific region. Similar systems have been successfully implemented in countries like Cambodia and the Solomon Islands. The integration of blockchain solutions in Palau's payable system can be considered the first step in the development of a modern financial system in the country with an improved approach to transparency and accessibility of financial services.
Japan's involvement, through METI's "Global South Future-Oriented Co-Creation Project," demonstrates the ongoing support for emerging economies. This collaboration not only strengthens Palau's financial system but also positions the country as a leader in adopting blockchain technology within the Pacific region. As Palau continues to modernize its financial infrastructure, this partnership underscores the potential for blockchain to drive economic development in small and developing nations.