By Sarah Clark
Merchants in Papua New Guinea’s capital city of Port Moresby have been participating in a proof of concept pilot of a digital version of the country’s Kina currency.
The proof of concept went live with select stores and cafes in Port Moresby and a small number of users at the end of 2024. Following the successful initial deployment, the number of people participating in the pilot will now be expanded, ahead of a full rollout of the Digital Kina.
“The CBDC proof of concept is an important step to improve the cost and efficiency of Papua New Guinea’s financial system,” Bank of Papua New Guinea governor Elizabeth Genia says.
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“Digital Kina has the potential to solve challenges in financial inclusion, security and accessibility, and we will work to ensure that it is beneficial to communities across the country.”
The Digital Kina is the first central bank digital currency to be built on the open source Hyperledger Iroha 2 blockchain. The pilot was conducted by the Bank of Papua New Guinea in cooperation with Japan’s Ministry of Economy, Trade and Industry and Japan-based fintech Soramitsu.
To use the central bank digital currency, participants download a mobile app and can then scan a merchant’s QR code to make a payment. A video demonstrating how the service works in stores is available to view on YouTube.
