Papua New Guinea is testing a digital version of its currency, the Digital Kina, with select merchants in Port Moresby. This pilot program began at the end of 2024 and will expand to include more participants ahead of a wider launch. The Bank of Papua New Guinea’s governor, Elizabeth Genia, emphasizes that this central bank digital currency (CBDC) could enhance financial inclusion and security. Built on the Hyperledger Iroha 2 blockchain, users can easily make payments by downloading a mobile app and scanning a merchant’s QR code. This innovative approach aims to improve the efficiency of the country’s financial system and ensure it benefits communities nationwide.
Merchants in Papua New Guinea’s capital, Port Moresby, have begun testing a digital version of the country’s Kina currency. This initiative, known as the Digital Kina, aims to modernize the financial system and improve payments for businesses and consumers.
The pilot project kicked off with select stores and cafes in late 2024. Following its initial success, the program is now set to expand, allowing more people to participate. Elizabeth Genia, the Governor of the Bank of Papua New Guinea, emphasizes the importance of this step. She states, “Digital Kina has the potential to tackle issues related to financial inclusion and enhance security and accessibility.”
The Digital Kina is notable for being the first central bank digital currency (CBDC) created on the open-source Hyperledger Iroha 2 blockchain. This project is a collaboration between the Bank of Papua New Guinea, Japan’s Ministry of Economy, Trade and Industry, and Japanese fintech company Soramitsu.
To make payments using the Digital Kina, users simply download a mobile app and scan a QR code at participating merchants. A video demonstrating this payment process is available on YouTube for those interested in seeing how it works.
By leveraging technology, Papua New Guinea hopes to transform its financial landscape, making transactions quicker, safer, and more accessible for everyone.
Tags: Digital Kina, Papua New Guinea, Central Bank Digital Currency, Financial Inclusion, Mobile Payments, Blockchain Technology.
What is the central bank digital currency by the Bank of Papua New Guinea?
The central bank digital currency is a digital form of money created by the Bank of Papua New Guinea. It aims to provide a safe, secure, and convenient way for people to make transactions in Port Moresby.
How will this digital currency benefit people in Papua New Guinea?
This digital currency will make it easier to send and receive money. It can reduce transaction fees and help more people access banking services, especially in areas where traditional banks are not available.
Is the new digital currency safe to use?
Yes, the digital currency is designed with strong security measures. It protects users’ information and helps prevent fraud. The Bank of Papua New Guinea is working to ensure that everyone can use it safely.
Can businesses use the central bank digital currency?
Absolutely! Businesses can accept this digital currency for payments, making it easier for customers to shop. It can also help businesses save on costs related to handling cash or traditional banking.
Where can I learn more about using the digital currency?
You can learn more through the Bank of Papua New Guinea’s official website or visit local banks for more information. They will provide guides and resources to help you understand how to use this new digital currency effectively.
