Bank of Papua completes CBDC trials, seeks expanding cross-border payments
The Bank of Papua New Guinea has wrapped up its CBDC trial and is now considering next steps for digital payments beyond national borders.
Authorities in Papua New Guinea are stepping up their central bank digital currency efforts, with the Bank of Papua New Guinea completing its CBDC proof-of-concept trial.
The trial, done in partnership with Soramitsu, Mitsubishi, JICA, and the Japanese government, tested how a CBDC could work in the country. During her speech, Bank of Papua New Guinea Governor Elizabeth Genia said the study aimed to improve financial inclusion and modernize the payment system. The central bank focused on “enhancing efficiency,” as well as “strengthening security,” and “promoting financial inclusion.”
In 2018, BPNG co-sponsored London Blockchain Week. Since then, it has tested digital identity solutions and launched a regulatory sandbox for fintech, Genia noted.
The CBDC trial simulated transactions in a sandbox, helping identify the benefits of a digital currency and the challenges of bringing it to a national level. Still, BPNG says there is a need to address “significant legal and regulatory gaps” before proceeding with any large-scale rollout.
The central bank now says future studies should “broaden the scope to engage more financial institutions, and explore cross-border payments with neighbouring countries.”
In July, when Soramitsu was chosen to develop the CBDC, it said a state-controlled digital currency could provide a “traceable record for potential recovery” if anything goes wrong. In 2020, the Japanese blockchain development firm gained prominence by introducing a CBDC in Cambodia, achieving over 10 million accounts by December 2023, representing 60% of the country’s population.
