Japanese blockchain company Soramitsu Labs is preparing to initiate a proof-of-concept experiment for a central bank digital currency (CBDC) in Papua New Guinea at the request of the country’s central bank. The Tokyo headquarters says the initiative aims to use blockchain technology to create a “common platform for Pacific island nations.”
Papua New Guinea, struggling with a number of financial inclusion and security challenges, is looking for new blockchain-based solutions to address these issues. Violent crime, including robbery, is common in many areas of the country, hampering financial inclusion and safety. Soramitsu said implementing a CBDC could serve as a solution by providing a “traceable record for potential recovery” should incidents occur. However, the company did not specify the duration of the pilot project or when Papua New Guinea plans to launch its CBDC.
Soramitsu is looking to build a blockchain-based bond market gateway for the Pacific island nation of Palau. The company has been awarded the contract and plans to launch the marketplace on a trial basis in fiscal 2024, with full implementation expected next year. This initiative will allow the Palau government to issue bonds to individual investors and effectively manage the payment of principal and interest.
Image: The Asian Banker