Customise Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorised as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyse the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customised advertisements based on the pages you visited previously and to analyse the effectiveness of the ad campaigns.

No cookies to display.

Search
Close this search box.

Bank of Papua New Guinea, Japan’s METI, and Soramitsu Complete CBDC Proof of Concept in Port Moresby

Introduction

The Bank of Papua New Guinea (BPNG), in partnership with Japan’s Ministry of Economy, Trade and Industry (METI) and fintech company Soramitsu, has successfully completed a Proof of Concept (PoC) for its Central Bank Digital Currency (CBDC), the Digital Kina. The event, held at the Hilton Hotel in Port Moresby, brought together key stakeholders from Papua New Guinea and Japan to discuss the future of digital currency in the country.

Read: The Ethics of Fraud Detection: Balancing Automation with Consumer Privacy

Why This News is Relevant

This initiative is a major milestone in the financial sector of Papua New Guinea. It reflects a growing global trend where central banks explore digital currencies to enhance financial systems and drive financial inclusion. With limited banking access in many parts of Papua New Guinea, the Digital Kina could revolutionize transactions by providing secure, instant, and cost-effective digital payment options. The successful PoC highlights the potential of blockchain technology to solve financial challenges and modernize the economy.

Industry Comments

During the event, several key figures shared their thoughts on the significance of the Digital Kina:

  • Elizabeth Genia, Governor of BPNG, emphasized that digital financial technologies are shaping the future of banking worldwide. She noted that the project aligns with the bank’s mission to improve access to financial services.
  • Hisanobu Mochizuki, Japanese Ambassador to Papua New Guinea, praised the collaboration between the two nations, highlighting Japan’s commitment to supporting Papua New Guinea in its financial transformation.
  • Dr. Makoto Takemiya, Group CEO of Soramitsu, stated that the Digital Kina is built on advanced blockchain technology that has been tested in various international projects. He expressed confidence that this innovation will empower Papua New Guinea’s citizens with more financial control.
  • Kazumasa Miyazawa, President of Soramitsu Japan, reaffirmed that Soramitsu is committed to supporting the digitalization of the country’s financial system.

Read: Automating Know-Your-Customer (KYC) and Anti-Money Laundering (AML) Processes

FAQ

What is the Digital Kina?

The Digital Kina is Papua New Guinea’s proposed Central Bank Digital Currency (CBDC). It is a digital version of the national currency designed to improve financial access and transaction efficiency.

How does the Digital Kina work?

The system operates on the SORA v3 Hub Chain, a blockchain platform powered by Hyperledger Iroha 2. This technology ensures secure, instant transactions and allows users to send and receive money via a mobile app.

Why is this important for Papua New Guinea?

Many citizens in Papua New Guinea lack access to traditional banking services. The Digital Kina aims to bridge this gap by providing a secure and accessible digital payment system, reducing reliance on cash and improving financial inclusion.

What are the security features of the Digital Kina?

The system includes robust security measures, such as instant fund recovery in case of theft or loss. Additionally, transactions are secured through blockchain encryption, making them tamper-proof and highly reliable.

What is the next step for the Digital Kina?

Following the successful PoC, BPNG will expand testing to a broader audience to refine the system further. This phase will focus on improving transaction speed, security, and compliance with financial regulations. If successful, the Digital Kina could become a widely used payment method in the near future.

Conclusion

The completion of the Digital Kina Proof of Concept marks a significant step toward digital transformation in Papua New Guinea’s financial sector. With strong support from Japan and the innovative use of blockchain technology, the country is well-positioned to enhance financial inclusion and modernize its economy. As further testing and development take place, the Digital Kina has the potential to become a key tool in shaping Papua New Guinea’s financial future.

Read: Risk-Based Pricing and Fraud Prevention in Digital Lending
Read: The Rise of Identity Fraud and How Fintechs Can Combat It
Read:AI-Driven Fraud Prevention: The Next Frontier in Financial Security

To share your insights with the FinTech Newsroom, please write to us at news@intentamplify.com

Share With
Contact Us
StatCounter - Free Web Tracker and Counter