The Central Bank of Solomon Islands Partners with Soramitsu to Launch CBDC Pilot
The Central Bank of Solomon Islands has announced a collaboration with Japanese blockchain company Soramitsu to launch a proof-of-concept for a central bank digital currency (CBDC) called Bokolo Cash. The Prime Minister of Solomon Islands, Manasseh Sogavare, highlighted the country’s goal of using technology as a catalyst for inclusive and sustainable development. Bokolo Cash will have the same value as the Solomon Islands dollar and can be used for transactions in retail environments and person-to-person transfers within the capital city of Honiara. Commercial banks will test wholesale transfers, cross-border payments, and remittances. The CBDC will run on a tailored blockchain built on Hyperledger’s Iroha and integrate with Soramitsu’s Sora blockchain.
Two-Tier KYC Verification Process
Users of Bokolo Cash will need to go through a “two-tier” Know Your Customer (KYC) verification process. This ensures secure transactions and compliance with regulatory requirements. Soramitsu will provide the necessary technology for this process.
Legislative Step Completed in November
The official announcement of the CBDC project was made earlier this week, although it started in early November. On November 3rd, the CBSI Amendment Act 2023 was enacted, granting the Central Bank of Solomon Islands the authority to issue the CBDC.
Solomon Islands Joins Island Nations Exploring CBDC
The Solomon Islands is following other island nations such as Palau, the Marshall Islands, Mauritius, and Eastern Caribbean countries in exploring CBDCs. These nations recognize the potential benefits of digital currencies in terms of efficiency, transparency, and security.
Hot Take: Solomon Islands Embraces Digital Currency for Future Development
The Central Bank of Solomon Islands’ partnership with Soramitsu to launch the CBDC pilot, Bokolo Cash, demonstrates the country’s commitment to embracing digital currency as a means to foster inclusive and sustainable development. By leveraging technology, Solomon Islands aims to position itself at the forefront of the global technological landscape. The tailored blockchain infrastructure and integration with Soramitsu’s Sora blockchain will enable secure and efficient transactions using Bokolo Cash. This initiative aligns with the growing trend of island nations exploring CBDCs, recognizing the potential advantages offered by digital currencies. The launch of Bokolo Cash marks an important step towards embracing the future of digital finance in Solomon Islands.
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