The Bank of Papua New Guinea successfully completed the proof-of-concept (PoC) testing for its central bank digital currency (CBDC).
With support from Japan’s Ministry of Economy, Trade, and Industry (METI) and FinTech company Soramitsu, the Bank of Papua New Guinea tested Digital Kina, a national digital currency. The project aims to showcase how the CBDC can address key financial challenges in the country, including limited banking access, payment infrastructure vulnerabilities, and high cash dependency.
Soramitsu representatives shared insights into the project’s technical framework. Digital Kina was deployed on the SORA v3 Hub Chain, an open blockchain platform built on Hyperledger Iroha 2. The system enabled instant payments with a high level of security.
During testing, Digital Kina was used in real-world conditions. The Bank of Papua New Guinea provided test participants, including local businesses, with a mobile app that allowed them to process real-time domestic payments and cross-border transactions with partners in Japan. The technology also successfully underwent security trials for fund recovery in case of loss or theft.
The next phase involves scaling up testing to a broader audience to assess transaction speed, security, and regulatory compliance. This stage will help determine Digital Kina’s real-world applicability in different financial scenarios and lay the groundwork for full-scale implementation, enhancing the country’s financial resilience.
Kazumasa Miyazawa, President of Soramitsu Japan, emphasized the company’s commitment to modernizing Papua New Guinea’s financial system with cutting-edge blockchain solutions, which have already proven effective in other countries.
Soramitsu is actively engaged in global blockchain projects. For instance, in collaboration with the METI, the company assisted the government of Palau in developing a blockchain platform for issuing and managing savings bonds.
