Japanese blockchain company Soramitsu has been commissioned by the Central Bank of Papua New Guinea to conduct a series of experiments to test the procedures for launching and servicing settlements in a CBDC.

In a joint statement, the pilot participants said Soramitsu’s activities will focus on promising areas of blockchain use, including the creation of a common settlement platform for Pacific island nations in central bank digital currencies (CBDCs).

As part of the pilot project, the Central Bank of Papua New Guinea (PNG) plans not only to work out procedures in the area of ​​expanding financial inclusion for citizens, but also to approach the solution of regional security issues. In particular, to reduce the number of violent crimes and robberies on financial grounds. PNG believes that the launch of settlements in CBDC can serve as one of the potential solutions to this problem, since it allows for state control over transactions and the possibility of returning funds in the event of such incidents.

Soramitsu and PNG declined to comment on the financial terms of the partnership, the overall duration of the pilot project, or when the Central Bank of Papua New Guinea plans to launch its digital currency.

As a reminder, PNG first announced its intention to implement blockchain-based technology solutions to ensure financial inclusion of the country’s underbanked population back in 2017.