SORAMITSU, an infrastructure contributor to the SORA network, has joined Japan’s Central Bank Digital Currency (CBDC) Working Group. According to Reuters, the group will operate within the payments and settlements department, aiming to conduct an in-depth study of CBDCs.
The newly formed working group will build on the existing research and work done on digital currencies by the Central Bank of Japan. While there is no immediate intention to release a Japanese CBDC, the group’s efforts will deepen the understanding of digital currencies and their implications for Japan’s financial landscape.
In the past, SORAMITSU collaborated on a four-way partnership for digital currency interoperability between MUFG, the MUFG-founded Progmat Coin platform, and Datachain. The collaboration’s primary objective was to conduct a Proof of Concept (PoC) to enable interoperability between bank-issued stablecoins and regional digital currencies running on different blockchains. In April 2022, Datachain and SORAMITSU successfully achieved interoperability between Hyperledger Iroha Blockchains to exchange other digital currencies at the same time.
With Japan’s stablecoin regulations coming into effect this year, the project seeks to achieve payment efficiency, lower interbank fees, and enable 24/7 transactions, transcending the limitations of legacy bank opening hours. Progmat Coin, which supports native bank-issued stablecoins from multiple issuers, will be crucial in settling assets for security tokens and facilitating transactions.
SORAMITSU, a renowned blockchain developer, has been instrumental in powering the Bank of Cambodia’s blockchain-based infrastructure backbone, Project Bakong, which has been live and available to all Cambodians since 2020. The company’s involvement in multiple regional digital currency initiatives, including Laos, the Philippines, and Vietnam, further showcases its expertise in DLT solutions that support CBDC development and public blockchain-based solutions.
As SORAMITSU’s expertise and collaborations fostering CBDC development and interoperability continue to grow, its participation in Japan’s CBDC Working Group positions it as a critical player in shaping SORA as a new economic system. With ongoing research and developments in the CBDC space, Japan’s financial ecosystem is set to embrace the possibilities of digital currencies, laying the foundation for a more efficient and innovative economic landscape.