This project, supported by the Japanese blockchain company Soramitsu, aims to introduce a central bank digital currency (CBDC) equivalent to one Solomon Islands dollar. Bokolo Cash will be usable in retail environments within Honiara, the nation’s capital, and for transferring money between individuals. Soramitsu has extensive experience in launching digital assets and financial DLT infrastructures.
Notably, the Eastern Caribbean countries have already embraced an official CBDC known as DCash. The implementation of the pilot project required legislative changes by the CBSI in the Solomon Islands. The parliament recently passed a bill that added the ‘electronic money’ definition to the existing framework as well as amended certain aspects of the central bank’s regulation to accommodate the new technology.
The pilot will also test wholesale bank transfers and simulated cross-border payments and remittances. 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. The Solomon Islands’ Central Bank has initiated a trial for a new digital currency, named Bokolo Cash.
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Additionally, users will be subjected to a “two-tier” Know Your Customer verification process, according to Soramitsu. A Bokolo Cash wallet allows PoC participants and merchants to manage their CBDC tokens on their mobile devices. Within the PoC, users will be able to seamlessly scan a standardized QR code with their Bokolo Cash wallet to send instant cash payments to merchants or make peer-to-peer cash transfers. Users will undergo two-tier Know Your Customer (KYC) identity verification, including eKYC, keeping in line with international regulations. After the PoC is completed, Bokolo Cash CBDC tokens will not retain any value at merchants or within the broader ecosystem. These tokens are accepted as legal tender within the confines of the PoC, with individual participants and businesses being able to send and receive Bokolo Cash between each other and receiving Bokolo Cash for payments.
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. The company’s technology is the foundation of the Cambodian bakong and the Lao DLak, and it has recently embarked on a project that integrates the bakong with stablecoins for regional cross-border payments. The central banks of Fiji, Vanuatu, Samoa, Tonga, Australia, New Zealand and Papua New Guinea were also present in the ceremony. As the first media outlet to report on blockchain-powered applications, we provide early adopters, developers, and visionary leaders with access to emerging technological landscapes, including wallets and games.
The launch of Bokolo Cash is a significant step for the Solomon Islands, signaling the country’s commitment to adopting modern, digital financial solutions. This move places the Solomon Islands alongside other island nations like Palau, the Marshall Islands, and Mauritius, which are also exploring the use of CBDCs. While Tonga has considered adopting Bitcoin as legal tender and Vanuatu is known for its Bitcoin-friendly Satoshi Island, the Eastern Caribbean countries have already implemented their own official CBDC, known as DCash. Bokolo Cash will be accepted at selected merchants in the capital Honiara, by the participants of the pilot project. Additionally, the CBDC will be tested in a wholesale setting, for interbank payments between the CBSI and/or commercial banks. At the heart of this groundbreaking project is Bokolo Cash, a CBDC system built on the Hyperledger Iroha 2-based blockchain.
Manasseh Sogavare, Prime Minister of Solomon Islands, said in a speech to mark the launch of Bokolo Cash that the main objectives are to increase financial inclusion for citizens and improve the economic resilience and overall prosperity of the country. In addition, the CBDC will reduce transaction costs, ensure transparent and secure transactions, and promote financial innovation in the country. The asset will be locally deployed on a specially designed blockchain network based on Hyperledger’s Iroha. It’ll also be available on the public blockchain network Sora for users of the non-custodial Fearless Wallet developed by Soramitsu. The Solomon Islands’ decision to launch CBDC exploration sees it join other island nations experimenting with CBDCs.
