Soramitsu Labs, a blockchain developer, plans to conduct a digital currency pilot in Papua New Guinea. This initiative aims to enhance financial inclusion and security through economic digitization.

The Japan-based blockchain firm is preparing to start a proof-of-concept experiment for a central bank digital currency (CBDC) in Papua New Guinea, following a request from the nation’s central bank. Soramitsu Labs intends to use blockchain technology to create a “common platform for Pacific island nations.”

In Papua New Guinea, challenges in financial inclusion and security are prevalent. Many regions face frequent violent crimes, including robberies, which impede financial accessibility and safety. Soramitsu believes that introducing a CBDC could offer a potential solution by providing a “traceable record for potential recovery” in case of such incidents. However, the company did not specify the duration of the pilot or the launch date for the CBDC.

Additionally, Soramitsu is working on building a blockchain-based bond market gateway for the Pacific island nation of Palau. 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. This initiative will allow the Palauan government to issue bonds to individual investors and manage principal and interest payments efficiently.

In 2020, Soramitsu made significant strides by introducing a CBDC in Cambodia. By December 2023, the CBDC had achieved over 10 million accounts, representing 60% of the country’s population. Cambodia’s central bank governor, Chea Serey, later announced plans to expand the CBDC’s global footprint through collaborations with UnionPay International and other international partners.

For more updates on cryptocurrency, investing, and finance, continue exploring the latest news on Global Crypto News.

Post Views: 9