Soramitsu, known for developing Cambodia’s CBDC, will create a blockchain-based bond market gateway for Palau, aiming for a trial launch in fiscal 2024 and full implementation the following year. The project aims to enable Palau’s government to issue bonds to individual investors and manage payments efficiently. Estimated to cost several hundred million yen, it’s reportedly more cost-effective than non-blockchain alternatives. Japan’s Ministry of Economy, Trade, and Industry supports the project, with strategic advice from Japan’s foreign and finance ministries, according to Nikkei.
Soramitsu gained acclaim for developing Cambodia’s CBDC in 2020, leading to over 10 million accounts by December 2023, covering 60% of Cambodia’s population. Cambodia’s central bank governor, Chea Serey, plans to extend the CBDC’s reach globally, including through partnerships with UnionPay International and other global entities. While Soramitsu’s work in Cambodia has been successful, the long-term viability of CBDCs remains uncertain. Recent reports from crypto.news highlighted a decline in activity for India’s e-rupee after local banks stopped artificially inflating its metrics in late June.
Sources familiar with the matter indicated that the Reserve Bank of India reached a milestone of 1 million retail transactions last December, facilitated by local banks inflating metrics. This involved incentives for retail users and distributing a portion of bank employees’ salaries through the digital currency.
