The Central Bank of Solomon Islands took the initiative to start a central bank digital currency pilot project, teaming with a Japanese blockchain firm.
The Solomon Islands have joined the list of several countries working on central bank digital currencies (CBDCs). Its digital currency pilot project, Bokolo Cash, recently launched in the country. Japanese blockchain firm Soramitsu has partnered with the Central Bank of Solomon Islands for the project.
Initially, retail use cases and person-to-person transfers will be possible. On the other hand, wholesale transfers will also see tests, including cross-border transfers and inter-bank transactions. Meanwhile, each Bokolo Cash will be worth one dollar of the Solomon Islands. Soramitsu published a press release announcing the launch, specifying the event’s details.
Honiara, the country’s capital city, will also have a few merchants accept Bokolo Cash. On the security front, users of the CBDC will have to undergo KYC verifications according to international standards. The launch ceremony of the digital currency pilot project saw speeches and demonstrations by Soramitsu. Moreover, the firm also explained the benefits of the CBDC.
Several government officials of the country were also present in the ceremony, including the Prime Minister of the Solomon Islands. Representatives of the central banks of New Zealand, Australia, and a few other countries were in attendance.
Prime Minister Manasseh Sogavare said, “By embracing digital currency, we position our nation at the forefront of the global technological landscape. The CBDC Pilot Project signifies our commitment to embracing the future, capitalizing on the efficiency, transparency, and security that digital currency offers.”
A string of CBDC pilots have been taking place in countries worldwide recently. South Korea and Switzerland made the headlines for CBDC pilots in November. The pilot project in Hong Kong also saw private participants. With the Prime Minister of the Solomon Islands lending support to the CBDC project, adoption could increase exponentially in the Solomon Islands.
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