Palau debuts blockchain-based savings bonds by CBDC developer Soramitsu

The government of Palau, in partnership with Soramitsu and Japan’s ministry, has launched a blockchain-based savings bond prototype aimed at boosting domestic investment growth.

Palau is launching a blockchain-based savings bond system developed in collaboration with Japanese blockchain firm Soramitsu and Japan’s Ministry of Economy, Trade and Industry to provide citizens with investment opportunities in domestic infrastructure projects.

The so-called “Palau Invest” initiative aims to empower citizens by providing them with a new tool to invest in national projects and earn returns on these investments, Soramitsu said in a press release on Tuesday, October 8.

Building on SORA v3 Hub Chain’s Hyperledger Iroha 2-based network, the program is part of METI’s “Global South Future Co-Creation Project”, Japan’s commitment to supporting emerging economies through technological innovation. It is said that the funds obtained from digital savings bonds will be transferred to critical infrastructure projects such as housing, roads and public facilities.

Palau President Surangel Whipps, Jr. He emphasized the importance of the initiative and said it could help “stimulate job creation, improve business opportunities and foster a vibrant economy”.

As of press time, a public demonstration phase has been launched to familiarize citizens with the savings bond system before official issuance begins. Although an exact timeline has not been announced, once the bonds are finalized, they will be available for purchase through a mobile app that allows citizens to invest from their smartphones.

For Soramitsu, this launch represents another milestone in its efforts, which have previously implemented blockchain-based financial systems in the Asia-Pacific region, including central bank digital currency initiatives in Cambodia and Papua New Guinea.