Senator Calls for Audit on Palau’s Ripple-Backed Stablecoin Pilot Program
Palauan senator
Mark Rudimch has called for an audit of Palau’s stablecoin pilot program, launched by the country’s ministry of finance in partnership with
Ripple in July. In a letter sent to the public auditor
Satrunino Tewid, Rudimch reported the Palauan senate had concerns regarding the
“constitutionality, security, accountability, statutory authority, and oversight of the program.”
Palau’s Ripple-backed stablecoin program, launched and announced in July, faces opposition from the Palauan senate. According to local reports,
Senator Mark Rudimch, chairman of the Senate Resources, Commerce, Trade and
Development Committee, has requested
Public Auditor Satrunino Tewid audit the program, voicing various concerns regarding the ongoing test.
Rudimch’s concerns point in two different directions. The
first is related to the program’s legality, as he says the
Ministry of Finance might not have the authority to run a program of this kind in Palau.
“Is this a setup for an unconstitutional precedent?” he asked.
The second aspect has to do with the use of government resources without following proper procedure.
Rudimch explained that using Ripple’s research and development grant as collateral to secure 1:1 dollar stablecoin redemptions
“supersedes or suspends existing laws and regulations” to fund the pilot program.
