Bokolo Cash, the new digital currency, is intended to drive technological advancement and economic growth. The Solomon Islands joins other small island countries like Palau, the Marshall Islands, and Mauritius in piloting CBDCs. 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.
The trial will also encompass broader financial operations like inter-bank wholesale transactions and test runs of international payments and remittances. To ensure security and compliance, a stringent two-tier customer verification process will be implemented. Bokolo Cash is designed to run on a specialised blockchain infrastructure, modelled on Hyperledger’s Iroha technology, and will be connected to Soramitsu’s public Sora blockchain. This setup will enable users to execute transactions using QR codes and the Fearless Wallet, a secure storage solution developed by Soramitsu. The Central Bank of Solomon Islands took the initiative to start a central bank digital currency pilot project, teaming with a Japanese blockchain firm. Users can spend it at merchants in the capital Honiara and transfer it person-to-person.
Bokolo Cash will be usable in retail environments within Honiara, the nation’s capital, and for transferring money between individuals. 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. Commercial banks will test wholesale transfers, along with simulated cross-border payments and remittances. Additionally, users will be subjected to a “two-tier” Know Your Customer verification process, according to Soramitsu.
Honiara, the country’s capital city, will also have a few merchants accept Bokolo Cash. On the security front, users of the CBDC will have to undergo KYC verifications according to international standards. The launch ceremony of the digital currency pilot project saw speeches and demonstrations by Soramitsu.
This was announced by representatives of Japanese FinTech company Soramitsu, the technical partner of the project. There, users can transfer Bokolo Cash via QR codes and the self-custody Fearless Wallet developed by Soramitsu. Bokolo Cash will operate locally on a tailor-made blockchain based on Hyperledger’s Iroha. Although still in the preliminary stages, the PoC hinted at plans to explore cross-border payment functionality through a blockchain. CBSI and Soramitsu are eyeing interoperability and global reach as key metrics in choosing a potential ledger to be the underlying architecture for their cross-border ambitions. The Solomon Islands Prime Minister Manasseh Sogavare hailed the CBSI’s decision to begin CBDC exploration as a step in the right direction designed to improve financial inclusivity in the country.
