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The central bank of Papua New Guinea successfully completed the proof-of-concept (PoC) testing for its central bank digital currency (CBDC).
With assistance from Japan’s Ministry of Economy, Trade, and Industry (METI) and the FinTech company Soramitsu, the Bank of Papua New Guinea evaluated Digital Kina, a national digital currency. The initiative aims to demonstrate how the CBDC can address significant financial issues in the country, such as limited banking access, vulnerabilities in payment infrastructure, and a heavy reliance on cash.
Representatives from Soramitsu provided details regarding the project’s technical framework. Digital Kina was implemented on the SORA v3 Hub Chain, an open blockchain platform developed on Hyperledger Iroha 2. This system facilitated instant payments with a high level of security.
During the testing phase, Digital Kina was utilized in practical scenarios. The Bank of Papua New Guinea provided test participants, including local businesses, with a mobile application that enabled them to conduct real-time domestic payments and cross-border transactions with partners in Japan. The technology also successfully underwent security tests for fund recovery in cases of loss or theft.
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The next phase involves expanding testing to a wider audience to evaluate transaction speed, security, and regulatory compliance. This stage will help determine Digital Kina’s practical applicability in various financial situations and establish the foundation for full-scale implementation, thereby enhancing the country’s financial resilience.
Kazumasa Miyazawa, President of Soramitsu Japan, highlighted the company’s dedication to modernizing Papua New Guinea’s financial system with advanced blockchain solutions, which have already demonstrated effectiveness in other countries.
Soramitsu is actively involved in global blockchain initiatives. For instance, in partnership with METI, the company assisted the government of Palau in developing a blockchain platform for the issuance and management of savings bonds.
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