The Central Bank of Solomon Islands has teamed up with Japanese blockchain firm Soramitsu to launch a proof-of-concept for a CBDC (Central Bank Digital Currency) called Bokolo Cash. The project was officially announced on Tuesday, following the successful passage of the CBSI Amendment Act 2023 on November 3rd.
In a keynote speech, Solomon Islands Prime Minister Manasseh Sogavare said his country was embarking on the CBDC journey with the goal of leveraging technology as “a catalyst for inclusive and sustainable development, ultimately fostering shared prosperity across our beautiful nation.”
Bokolo Cash is equal to one Solomon Islands dollar, and it will be used for transactions in retail environments within the capital city of Honiara, as well as for person-to-person transfers. Commercial banks will also use the currency to test wholesale transfers, cross-border payments, and remittances. Users will be subjected to a “two-tier” Know Your Customer verification process.
The CBDC is built on Hyperledger’s Iroha blockchain, and it will be integrated with Soramitsu’s public Sora blockchain. This will allow users to conduct transfers using QR codes and leverage the self-custody Fearless Wallet.
The Solomon Islands joins a growing number of island nations experimenting with CBDCs. Palau, the Marshall Islands, and Mauritius have previously explored this concept, while the Eastern Caribbean countries have already adopted an official CBDC known as DCash.
Overall, the project is centered around the idea of embracing technology to foster shared prosperity and position the Solomon Islands at the forefront of the global technological landscape.
