Soramitsu Labs, a pioneering blockchain development firm, is set to launch a digital currency pilot in Papua New Guinea. This initiative seeks to enhance financial inclusivity and security through the digitization of the economy, marking a significant stride towards modernizing the nation’s financial landscape.

Based in Tokyo, Soramitsu Labs will spearhead this proof-of-concept for a central bank digital currency (CBDC) at the behest of Papua New Guinea’s central bank. The endeavor aims to establish a unified blockchain platform tailored for the Pacific island nations, as detailed in a press release.

Papua New Guinea has been grappling with financial inclusivity and security challenges. The prevalence of violent crimes, including frequent robberies, impedes financial accessibility and safety. In response, the introduction of a CBDC is proposed as a solution to create a traceable financial record, enhancing the potential for asset recovery in the event of criminal incidents. However, specifics regarding the pilot’s timeline and the official launch date for Papua New Guinea’s CBDC remain undisclosed.

Read more: Is Australia Moving Too Fast on CBDC?

In parallel, Soramitsu Labs is also constructing a blockchain-based bond market gateway for Palau. As previously reported, the company secured the contract to implement this market on a trial basis in fiscal 2024, with a full launch anticipated the following year. This project will empower the Palauan government to issue bonds to individual investors, streamlining the management of principal and interest payments.

Soramitsu gained significant recognition in 2020 with the launch of Cambodia’s CBDC, which has amassed over 10 million accounts by December 2023, covering 60% of Cambodia’s population. Cambodia’s central bank governor, Chea Serey, has announced plans to extend the CBDC’s global reach through partnerships with UnionPay International, China’s leading card payment service, and other international collaborators.

Papua New Guinea’s foray into digital currency, facilitated by Soramitsu Labs, heralds a transformative era for the nation’s financial infrastructure, underscoring the pivotal role of blockchain technology in fostering economic advancement and security.