SORAMITSU just announced a significant development of a live Proof of Concept (PoC) Central Bank Digital Currency (CBDC) with the launch of Bokolo Cash on Hyperledger Iroha 2 and the SORA network. This CBDC system began its testing phase on November 1, 2023. This initiative, spearheaded by the Central Bank of Solomon Islands (CBSI), represents a major advancement in both domestic and foreign payment systems, including the testing of simulated international remittances.
Bokolo Cash: A Hyperledger Iroha 2-based Innovation
At the heart of this groundbreaking project is Bokolo Cash, a CBDC system built on the Hyperledger Iroha 2-based blockchain. Named after the traditional Solomon Islands currency made from shells, Bokolo Cash serves as a digital counterpart of the Solomon Dollar. It is issued by the CBSI and is available as tokens for Proof of Concept (PoC) participants. Each Bokolo is equivalent to one Solomon Islands dollar and is recognized as a legal tender within the PoC, facilitating seamless transactions among participants and businesses.
Integration with the SORA Network: Bridging the Gap
In a move to enhance cross-border payment feasibility, Bokolo Cash will be bridged to the SORA network, a decentralized Substrate-based public blockchain. This integration empowers users to transfer Bokolo Cash tokens within the network using QR codes through the Fearless Wallet mobile app. This app, compatible with the SORA public blockchain and developed by Soramitsu, leverages the security, availability, and speed of public blockchain technology.
Fearless Wallet: Simplifying Transactions Across Networks
With the Fearless Wallet, users can easily scan QR codes to send their CBDC, and the system will automatically convert across the bridge if it’s on another network. This feature not only simplifies the transaction process but also ensures seamless interoperability across different blockchain networks.
Celebrating the CBDC Launch
The CBDC’s demonstration experiment was marked by a ceremony on November 28, 2023, attended by prominent figures including the Prime Minister of Solomon Islands, central bank governors, and representatives from various Pacific nations. The event highlighted the potential of CBDC in transforming the financial sector and its beneficial impact on the economy and technology sectors.
Financial Modernization in the Solomon Islands
The Bokolo Cash PoC will provide valuable insights for the CBSI, aiding in decision-making as they leverage the latest technology for the betterment of the Solomon Islands. The implementation of a regulatory sandbox and amendments to the CBSI Act 2012 for digital currency developments are steps towards this modernization.