The government of Palau in collaboration with global fintech, Soramitsu, and Japan’s Ministry of Economy, Trade and Industry (METI) have officially launched a prototype of a blockchain-based savings bonds system, Palau Invest.
The launch marks a significant step in proactively securing Palau’s financial future.
According to a presser by Soramitsu, the digital savings bonds give Palauan citizens a simple way to invest in their own country while earning yield from the benefits of those investments.
“Funds raised through the bonds will be used to fuel activities including national infrastructure projects such as bridges, roads, and public facilities, ultimately benefiting Palau’s economic growth,” the presser reads in part.
“This will lead to many trickle-down effects that will benefit all Palauans.”
METI’s “Global South Future-Oriented Co-Creation Project” sponsored Palau Invest, showcasing Japan’s commitment to empowering emerging economies through cutting-edge Japanese technology.
Speaking on the launch, President Surangel Whipps Jr said the savings bonds initiative enables the Palauans to fund key projects such as housing, SME development, roads, and other essential services, with capital sourced domestically.
These projects, he said, are not just critical to infrastructure, but they also generate spillover effects that ripple throughout and within Palau’s local economy.
“By investing in these areas, we stimulate job creation, enhance business opportunities, and foster a more vibrant economic environment,” Whipps Jr said.
“The significance of this moment extends beyond the creation of a new financial product and digital platform.”
“Palau Invest represents a broader effort by Palau to take greater control of its financial future – one where we determine the direction of our development and invest directly in our nation’s growth.”
On his part, Palau’s Finance Minister Kaleb Udui Jr noted that one of the ministry’s goals has always been to expand access to different financial tools.
This, he added, also includes empowering more citizens to invest in the nation’s development.
“Today’s launch marks an important milestone in the ministry’s broader effort to promote financial inclusion and innovation,” Udui Jr said.
“This digital savings bonds platform is part of a larger initiative that includes ongoing efforts in strengthening our financial systems and improving access to investment opportunities for every Palauan.”
The Palauan government intends to conduct public demonstrations on how digital savings bonds work so that the people of Palau can learn about the system and educate themselves before bonds are issued by the Finance Ministry.
“Once the bond issuance criteria are finalised by the Ministry of Finance and approved by the Government of Palau, the digital savings bonds will be issued and any Palauan will be able to buy them from the comfort of their phone via a mobile app,” the statement read.
This blockchain app is expected to operate on SORA v3 Hub Chain’s Hyperledger Iroha 2-based network, an open-source blockchain platform that uses the latest technology to make it easy to program decentralised apps that are fast and highly preformant.
“Hyperledger Iroha 2’s innovative technology is best in class and is more than capable of processing the transactional needs of everyone in Palau,” Soramitsu said in a statement.
“By using the SORA v3 Hub Chain platform, Palau can issue blockchain-based bonds without spending significant costs to run the infrastructure.”
Beyond Palau, Soramitsu has also successfully deployed blockchain-based financial systems across the Asia-Pacific region, including successful CBDC initiatives in Cambodia, Laos, and the Solomon Islands;
The Hyperledger Iroha-powered Bakong CBDC, in particular, processes more than $300 million daily.
These projects are part of a broader vision to build a shared financial platform across Pacific Island nations, enabling easier access to modern financial services at reduced costs through blockchain technology.
Soramitsu co-founder and Group CEO Makoto Takemiya noted that the fintech’s mission has always been to leverage cutting-edge blockchain technology to create meaningful change in the world’s financial systems.
“The Palau Blockchain-Based Savings Bond project is a testament to how we can apply decentralised technology to bring efficiency, security, and transparency to national economies,” he said.
By working closely with the Ministry of Finance of Palau and Japan’s METI, Takemiya added that they are revolutionising how nations manage their finances and taking significant steps toward improving financial accessibility and promoting the well-being of citizens.
This project showcases Soramitsu’s commitment to driving innovation that fosters economic growth and social progress for the global community,” he concluded.
The digital savings bond system represents the beginning of a new era of financial accessibility in Palau, leveraging blockchain to reshape how nations can manage their finances for the public good.
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