Phase 2a Findings and Analysis: Building a Comprehensive National Payment Service

The report highlights five critical focus areas that are essential to the success of the National Payment Service.

The Payment Service Bill is being developed to establish a comprehensive legal framework for the National Payment Service.
Clear guidelines will be established to prevent misuse or mismanagement of collateral reserves through legislation such as the Payment Services Bill.

Internet access and endpoint devices are crucial components of the technical infrastructure.
AML/KYC regulations, accessibility, and cybersecurity measures must be implemented to ensure a secure and reliable payment system.

The pilot phase 1 construct is being broadened into a full-production model with the ability to “buy-in” to PSC and onward use those funds for various use cases.
This design allows for flexibility and scalability, making it an ideal solution for the National Payment Service.

Banks will hold collateral to back digital tokens, providing a secure and stable foundation for the payment system.
Legislation such as the Payment Services Bill will establish guidelines to prevent misuse or mismanagement of collateral reserves.

A robust strategic communications plan is necessary to safeguard project integrity and public trust.
Public-private partnerships are essential for implementing a comprehensive public information campaign.

The report highlights several key findings that are crucial to the success of the National Payment Service:

Clear definition of banks’ roles: The project requires a clear definition of banks’ roles in holding collateral for tokenized dollar solutions.
Legislation and guidelines: Legislation such as the Payment Services Bill will establish guidelines to prevent misuse or mismanagement of collateral reserves.
Public-private partnerships: Public-private partnerships are essential for implementing a robust strategic communications plan and launching a comprehensive public information campaign.
Distribution model: The project requires a distribution model of PSC with a network of Palau distributors and ownership of technology by local providers.

Based on the findings, the report provides several recommendations to ensure the success of the National Payment Service:

Establish clear guidelines for banks’ roles: Clear guidelines must be established for banks’ roles in holding collateral for tokenized dollar solutions.
Implement a distribution model: A distribution model of PSC with a network of Palau distributors must be implemented.
Ensure public-private partnerships: Public-private partnerships must be established to support the project’s strategic communications plan.
Develop targeted messaging campaigns: Targeted and persuasive messaging campaigns must be developed through collaborative efforts with reputable institutions and stakeholders.