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Palau Audit Finds Legal Gaps in Ripple-Backed Stablecoin Pilot Project
An audit has revealed legal gaps in Palau’s pilot project for a US dollar-backed stablecoin, which was backed by Ripple. The Ministry of Finance and Ripple collaborated on the trial to improve financial efficiency, cut costs, and reduce reliance on physical cash.
According to the final report from the Office of the Public Auditor, both the Attorney General and National Director of Program, Budget, and Management failed to certify the agreements as required by law. This oversight was attributed to internal guidance from the Office of the President’s legal staff, although the Auditor emphasized that government contracts must follow procurement laws regardless of funding source.
Notably, no misuse of funds or procedural conflict by staff was reported during the pilot phase. The Ministry of Finance acknowledged the audit’s findings and accepted full responsibility for the oversight.
As a result, any future rollout of the stablecoin, dubbed Palau Stablecoin (PSC), will require formal approval from Palau’s National Congress.
Source: blockonomi.com
