The Bank of Papua New Guinea has successfully completed its Central Bank Digital Currency (CBDC) pilot program, marking a major milestone in Papua New Guinea’s financial technology sector. The Digital Kina trial was conducted in partnership with Soramitsu, a Japanese blockchain company, and demonstrated the potential for instant digital transactions, reduced remittance costs, and improved financial inclusion.
BPNG Governor Elizabeth Genia highlighted the importance of digital transformation in modernising Papua New Guinea’s economy. “The successful trial of the Digital Kina proves that we are on the right path towards financial innovation. This will enable secure and seamless transactions, particularly benefiting remote communities with limited banking access,” she said in an interview with FinTech Futures.
Papua New Guinea has long struggled with financial accessibility, as nearly 75 per cent of its population remains unbanked. The CBDC initiative aims to bridge this gap, providing an alternative to cash-based transactions and reducing reliance on expensive remittance services.
The trial leveraged blockchain technology to facilitate instant cross-border transfers, particularly benefiting Papua New Guinea’s large diaspora community sending remittances. The government is now working on regulatory frameworks to integrate Digital Kina into mainstream banking while ensuring cybersecurity and compliance with global financial regulations.
The pilot program’s success is expected to encourage further foreign investments in Papua New Guinea’s fintech sector, positioning the country as a leader in digital payments innovation within the Pacific region.
