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

Blockchain developer Soramitsu Labs plans to run a digital currency pilot in Papua New Guinea that aims to increase financial inclusion and security through economic digitization.

Japan-based blockchain firm Soramitsu Labs is preparing to launch a proof-of-concept trial for a central bank digital currency (CBDC) in Papua New Guinea, following a request from the country’s central bank. The Tokyo-based firm 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, which is grappling with several challenges in financial inclusion and security, appears to be looking at new blockchain-based solutions to address these issues. Many areas in the country experience frequent violent crimes, including robberies, which hinder financial accessibility and security.

Soramitsu said introducing a CBDC could be a potential solution, providing a “traceable record for possible recovery” if such events were to occur. However, the company did not specify the duration of the pilot or when it planned to launch Papua New Guinea’s CBDC.

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

Soramitsu rose to prominence in 2020 by introducing a CBDC in Cambodia, reaching over 10 million accounts by December 2023, 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, China’s primary card payment service, and other international partners.