Cambodia’s CBDC dev Soramitsu to pilot digital currency for Papua New Guinea

Soramitsu Labs, a blockchain developer, intends to conduct a digital currency pilot in Papua New Guinea aimed at improving financial inclusion and security through economic digitization.

Japan-based blockchain firm Soramitsu Labs is gearing up to initiate a proof-of-concept experiment for a central bank digital currency (CBDC) in Papua New Guinea, as requested by the nation’s central bank. The Tokyo-headquartered says the initiative aims to leverage blockchain technology to create “a common platform for Pacific island nations,” according to a press release seen by crypto.news.

Papua New Guinea, grappling with some challenges in financial inclusion and security, appears to be seeking new blockchain-based solutions to address these issues. Many regions in the country experience frequent violent crimes, including robberies, which hinder financial accessibility and safety.

Soramitsu says the introduction of a CBDC could serve as a potential solution, providing a “traceable record for potential recovery” should such incidents occur. However, the company didn’t specify the duration of the pilot or when Papua New Guinea plans to launch its CBDC.

Meanwhile, Soramitsu is set to build a blockchain-based bond market gateway for the Pacific island nation of Palau. As crypto.news reported earlier, the company secured the contract and plans to introduce the marketplace on a trial basis in fiscal 2024, with a full rollout expected the following year. The initiative will enable the Palauan government to issue bonds to individual investors and manage principal and interest payments efficiently.

In 2020, Soramitsu gained prominence by introducing a CBDC in Cambodia, achieving over 10 million accounts by December 2023, representing 60% of the country’s population. Cambodia’s central bank governor Chea Serey later revealed plans to expand the CBDC’s global footprint through collaborations with UnionPay International, China’s primary card payment service, and other international partners.