The SORA Network Hosts the First Substrate/Polkadot-Based CBDC in Collaboration with the Central Bank of Solomon Islands
In a landmark initiative that started on November 1, 2023, the Central Bank of Solomon Islands (hereafter CBSI), in partnership with Soramitsu, commenced testing the Bokolo Cash CBDC Proof of Concept, operating on a permissioned blockchain based on Hyperledger Iroha 2, as well on the SORA decentralized public blockchain, marking a significant stride in digital currency, as the first instance of a CBDC being operational on both networks.
Bokolo Cash, named after the Solomon Islands’ traditional shell currency, represents a digital form of the Solomon Dollar. Under this initiative, PoC participants tested several applications of Bokolo Cash, including retail purchases and domestic and international payments and simulated international remittances.
Although the underlying technology of Bokolo Cash is a Hyperledger Iroha 2-based permissioned blockchain, its uniqueness lies in its integration with the SORA network. This integration allows Bokolo Cash users to harness the benefits of a public blockchain, namely enhanced security, global reach, and interoperability, crucial for cross-border transactions.
Participants in the PoC can use the SORA network-compatible Fearless Wallet mobile app to transfer Bokolo Cash tokens using QR codes. In this case, SORA simulates cross-border remittances, exemplifying the practical application of public blockchain technology in facilitating accessible, secure, and efficient cross-border payments.
The SORA network’s decentralized nature is a crucial advantage, as it operates independently of any national jurisdiction, thus offering a politically neutral platform for CBDC transactions and by providing XORless transfers, allowing on-chain transactions without CBDC holders needing cryptocurrencies to cover fees, Central Bank currencies do not need to face the same issues as those raised using other blockchains such as Ethereum.
By leveraging advanced blockchain technology, the CBSI aims to promote financial inclusion and connect the Solomon Islands more effectively to the global economy, as underlined in their amendment to relevant sections of the CBSI Act 2012 to accommodate digital currency developments, aligning with the SORA vision of harnessing technology to improve financial systems for the benefits of humanity.
This PoC serves as a blueprint for other central banks considering the adoption of CBDCs on public blockchains. The success of this project could pave the way for a new era in global financial transactions, where digital currencies operate seamlessly across borders and blockchains, fostering economic collaboration and efficiency.
The Bokolo Cash PoC represents a pioneering step in the world of digital currencies, demonstrating the potential of the SORA network to power CBDCs and empower financial inclusion and economic development by supporting seamless global financial transactions between individuals and financial institutions.
About SORA
SORA is an innovative, adaptive, non-debt-based monetary framework that facilitates economic stability, particularly for financially vulnerable countries. As a groundbreaking platform, SORA exemplifies the potential of blockchain technology in fostering a more inclusive and stable global financial system. Its integration in projects like the Bokolo Cash CBDC signifies a new era in digital currency, aligning technological advancements to achieve broader economic stability and resilience. Through its unique approach and capabilities, SORA plays a pivotal role in the evolution of global finance, particularly by supporting economies that need innovative and sustainable financial solutions the most.
