Papua New Guinea completes digital kina currency trial

The Bank of Papua New Guinea, in collaboration with Japan's Ministry of Economy, Trade and Industry (METI) and Soramitsu, has completed a proof of concept (PoC) for a Central Bank Digital Currency (CBDC) in Port Moresby.

The initiative, focused on developing a digital version of the Papua New Guinean Kina, was celebrated with a ceremony attended by notable figures, including Elizabeth Genia, Governor of the Bank of Papua New Guinea, and Hisanobu Mochizuki, Japanese Ambassador to Papua New Guinea. The ceremony involved presentations on the Digital Kina system and its anticipated impact on financial inclusion within the nation.

Governor Elizabeth Genia highlighted, "The rationale for the Proof-of-Concept study stems from the rapid advancements in digital financial technologies globally, which have opened up opportunities to enhance payment systems and improve financial inclusion. Many Central Banks around the world are exploring digital currencies to meet the evolving needs of the communities we serve."

George Awap, Assistant Governor of the Bank of Papua New Guinea, presented the significance of the PoC, marking a step towards financial development within the country.

Representatives from the Japanese government, including Nobuhisa Nishigata, Counsellor of the Cabinet Secretariat of Japan, and Hideaki Matsuoka, Chief Representative of JICA's Papua New Guinea Office, shared insights on the collaborative efforts.

The technological framework of the Digital Kina was detailed by Dr. Makoto Takemiya, Group CEO of Soramitsu, and Takayuki Himeno from the Mitsubishi Research Institute, followed by an interactive session with attendees.

The Digital Kina PoC integrates Soramitsu's technology into the SORA v3 Hub Chain. It is designed to tackle financial challenges in Papua New Guinea, including limited banking access and security issues.

Kazumasa Miyazawa, President of Soramitsu Japan, expressed commitment to the collaboration: "Soramitsu is dedicated to modernising and advancing Papua New Guinea's financial system while fostering the development of a digital economy. With the support of the Japanese government, we aim to leverage cutting-edge blockchain technology, proven in various countries, to make a meaningful contribution to this mission."

The PoC involved deploying a secure, continuous payment infrastructure, facilitating instant settlements and cross-border transactions. Practices such as real-time payments and remittances were executed via a mobile app, highlighting the platform's robust security features.

Dr. Makoto Takemiya noted, "The Digital Kina PoC with the Bank of Papua New Guinea represents the latest technology we have been working on for the last five years. We are excited to see how this project can bring modern financial solutions for the people of Papua New Guinea that will improve their lives and empower them with greater control over their money."

Looking ahead, the Bank of Papua New Guinea plans to broaden testing with a larger user group to refine the CBDC system further.

George Awap stated, "Today's ceremony is a testament to what can be achieved when innovative ideas meet practical execution. The Digital Kina CBDC Proof of Concept is a glimpse into how we can reshape financial interactions in Papua New Guinea. By addressing long-standing challenges, we're setting the stage for a system that reflects the resilience of our people."