The Central Bank of the Solomon Islands has launched a proof of concept for a central bank digital currency (CBDC) called Bokolo Cash, supported by Japanese blockchain Soramitsu.
Bokolo Cash will be worth one Solomon Islands dollar. Project participants can use it at retail establishments in the island nation's capital, Honiara, and for person-to-person transfers.
Wholesale transfers between commercial banks and simulated cross-border payments and remittances will also be tested. The users undergo โTwo-tierโ verification Know your customer, according to Soramitsu.
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Bokolo Cash will operate locally on a custom-built blockchain based on Hyperledger's Iroha. It will also have connectivity to Soramitsu's Sora public blockchain, where users will be able to make transfers with QR codes, and the Fearless Wallet self-custody wallet, which was developed by Soramitsu.
The project started on November 1, but was not announced until November 29. Prime Minister of the Solomon Islands, Manasseh Sogavare saying:
โBy adopting digital currency, we position our nation at the forefront of the global technology landscape. The CBDC Pilot Project signifies our commitment to embracing the future, capitalizing on the efficiency, transparency and security that digital currency offers.โ
The Solomons are a group of more than 900 islands west of Papua New Guinea with a population of approximately 700,000. It joins other island nations, such as Palauhe Marshall Islands and Mauricio โ when experimenting with CBDC. Besides, Tonga considered the possibility of introducing Bitcoin (btc) as legal tender, but has not yet done so, while Vanuatu is the BTC-friendly host nation Satoshi Island. The Eastern Caribbean countries already have an official CBDC called DCash.
Soramitsu is a major regional CBDC provider. Your technology boost Cambodian bakong and Lao DLakand has launched a project to use the bakong and stablecoins in a regional cross-border payment system.
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