Soramitsu Labs to Conduct Digital Currency Pilot in Papua New Guinea for Financial Inclusion and Security
Soramitsu Labs to Conduct Digital Currency Pilot in Papua New Guinea
Soramitsu Labs, a leading blockchain developer based in Japan, is set to launch a digital currency pilot in Papua New Guinea in a bid to enhance financial inclusion and security through economic digitization. The initiative, requested by the nation’s central bank, aims to leverage blockchain technology to create a common platform for Pacific island nations.
Papua New Guinea, facing challenges in financial inclusion and security, is looking to blockchain-based solutions to address these issues. The country has been plagued by violent crimes, such as robberies, which have hindered financial accessibility and safety for its citizens.
Soramitsu believes that the introduction of a central bank digital currency (CBDC) could provide a traceable record for potential recovery in case of such incidents. While the company did not specify the duration of the pilot or the launch date for Papua New Guinea’s CBDC, the move is seen as a step towards modernizing the country’s financial infrastructure.
In addition to the pilot in Papua New Guinea, Soramitsu is also working on building a blockchain-based bond market gateway for the Pacific island nation of Palau. The company recently 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 enable the Palauan government to issue bonds to individual investors and manage payments efficiently.
Soramitsu gained recognition in 2020 for introducing a CBDC in Cambodia, which saw over 10 million accounts by December 2023, representing 60% of the country’s population. Cambodia’s central bank governor later revealed plans to expand the CBDC’s global footprint through collaborations with UnionPay International and other international partners.
The upcoming digital currency pilot in Papua New Guinea highlights Soramitsu’s commitment to driving financial innovation and inclusion in the Asia-Pacific region through blockchain technology.
