- The Central Bank of Solomon Islands launched Bokolo Cash, a CBDC proof-of-concept, partnering with Japanese blockchain company Soramitsu, positioning the Solomons as leaders in CBDC development.
- Bokolo Cash is pegged to the Solomon Islands dollar; the pilot will test use at merchants, P2P transfers, bank transfers, and cross-border payments/remittances. Users undergo KYC verification.
- Bokolo Cash runs on a custom blockchain using Hyperledger Iroha; it connects to Soramitsu’s Sora network for QR code transfers via the Fearless Wallet.
The Central Bank of Solomon Islands has launched a proof-of-concept for a central bank digital currency (CBDC) called Bokolo Cash, partnering with Japanese blockchain company Soramitsu. This positions the Solomons at the forefront of CBDC development globally.
Launching the Bokolo Cash Pilot
Bokolo Cash is pegged to the Solomon Islands dollar. Users can spend it at merchants in the capital Honiara and transfer it person-to-person. The pilot will also test wholesale bank transfers and simulated cross-border payments and remittances. Soramitsu says users will undergo “two-tier” Know Your Customer verification.
Tech Powering Bokolo Cash
The CBDC will run on a custom blockchain using Hyperledger’s Iroha protocol. It will connect to Soramitsu’s public Sora network too. There, users can transfer Bokolo Cash via QR codes and the self-custody Fearless Wallet developed by Soramitsu.
Island Nations Lead in Experimentation
The Solomon Islands joins other small island countries like Palau, the Marshall Islands, and Mauritius in piloting CBDCs. Tonga has considered making Bitcoin legal tender but not done so yet. Bitcoin-friendly Vanuatu hosts the Satoshi Island project. Some Eastern Caribbean nations have launched the DCash CBDC.
Soramitsu’s Global Reach
The Japanese company provides the technology for Cambodia’s bakong and Laos’ DLak CBDCs. It also started a project to facilitate cross-border payments between countries using the bakong and stablecoins.