The Bank of Papua New Guinea, in collaboration with the Japanese Ministry of Economy, Trade and Industry (METI) and Tokyo-based fintech Soramitsu, has successfully completed a proof of concept (PoC) for its proposed central bank digital currency (CBDC), the Digital Kina. The initiative leveraged Soramitsu’s advanced blockchain technology, supported by the SORA v3 Hub Chain and the open-source Hyperledger Iroha 2 platform, to create a secure, round-the-clock payment infrastructure.
During the pilot, participants from the central bank and local businesses in Port Moresby utilized a mobile application to conduct real-time payments and peer-to-peer remittances. The trial not only demonstrated instantaneous transactions and international remittances but also tested critical security features such as fund recovery in cases of theft or loss.
Elizabeth Genia, Governor of the Central Bank of Papua New Guinea, remarked, “The CBDC proof of concept is an important step to improve the cost and efficiency of Papua New Guinea’s financial system.” She added that Digital Kina has the potential to address challenges in financial inclusion, security, and accessibility across the country.
Looking ahead, the involved parties plan to expand the pilot to include a larger user base, allowing them to refine the system further and gather valuable feedback. The next phase will focus on enhancing the platform’s speed, security, and regulatory capabilities.
This development marks a significant stride in Papua New Guinea’s digital finance journey, aligning with broader regional trends in CBDC innovation. For further insights into Asia’s rapid progress in CBDC development, please refer to our in-depth analysis on the subject.
