The Bank of Papua New Guinea has successfully finished a proof of concept for its Digital Kina CBDC, demonstrating the potential for real-time payments and financial inclusion in partnership with Tokyo-based Soramitsu and Japan's METI.

The Bank of Papua New Guinea has successfully finished a proof of concept (PoC) for the Digital Kina, its proposed central bank digital currency (CBDC), in collaboration with Tokyo-based fintech company Soramitsu and Japan's Ministry of Economy, Trade and Industry (METI).

The SORA v3 Hub Chain, a global network driven by the open-source Hyperledger Iroha 2 blockchain, underpinned Soramitsu's blockchain technology throughout the experiment. Soramitsu claims that the PoC created a safe, round-the-clock payment system that can support international transfers and instantaneous transactions.

Using a smartphone application, users from the central bank and nearby companies in the capital of Papua New Guinea, Port Moresby, carried out peer-to-peer transfers and real-time payments during the trial. Additionally, the test effectively assessed security elements, such as methods for recovering funds in the event of loss or theft.

The PoC, according to Elizabeth Genia, governor of the Bank of Papua New Guinea, is an essential step in improving the efficacy and affordability of the country's financial system. She underlined that the Digital Kina may solve issues with financial inclusion, enhance security, and increase accessibility, guaranteeing real advantages for communities all throughout the nation.

In the future, the project's next stage will entail broadening the pilot's user base, improving the system's functionality, and fortifying its security and legal foundation.