Bank of Papua New Guinea Draws on Japanese Tech Support to Develop Digital Currency
The launch of the Japanese-sponsored study into the central bank digital currency for PNG took place earlier this year, where BPNG Governor batted for the country’s robust digitalization drive.

(Photo: SBR)
PORT MORESBY / TOKYO, Sept. 30, 2025 — Taking a cue from the leading digital economies, Papua New Guinea is undergoing digitalization of its economy, spearheaded by its financial institutions. The more ambitious initiative is led by Bank of Papua New Guinea, or BPNG, which is exploring the potential launch of a central bank digital currency, or CBDC.
In February, Bank of Papua New Guinea presented the results of proof-of-concept experimentation for the CBDC.
The most important collaboration in the development of CBDC is between BPNG and Japan International Cooperation Agency, or JICA.
In its engagement with the government and other stakeholders of PNG, JICA has stated that it is committed to supporting the dissemination of the technology for the country’s bright future.
Notably, the development of the CBDC, also known as ‘digital kina,’ has been a collaborative effort, involving the central bank and Japan-headquartered companies Soramitsu and Mitsubishi, for which the Japanese government has extended financial and technological support.
BPNG’s Governor, Elizabeth Genia, has been highly optimistic over the proposed launch of the digital currency.
In January this year, speaking at the launch of a Japanese-sponsored study into the central bank digital currency for PNG, Elizabeth said the work done to finalize the digital currency was an “important first step but only the beginning” of CBDC efforts in Papua New Guinea and “an exploratory step to evaluating the feasibility of introducing a CBDC.”
“With an increasing number of PNG’s banks and financial institutions adopting new platforms … our economy is already undergoing a significant digital transformation,” said Elizabeth.
As per a statement, those involved were “able to simulate the core functions of a digital currency system,” with central bank employees, as well as staff from JICA and the Japanese Embassy, testing “digital payments and transaction security under controlled conditions.”
The blockchain-enabled currency is in its infancy, but Papua New Guinea’s financial institutions are at the forefront to digitalize the country’s economy.
“You have got the new players who are coming in who are focusing on digital channels, and then you’ve got the traditional players who obviously don’t want to miss out on the opportunities,” said Herbert Maguma, Managing Partner at consultants Deloitte PNG. “The culmination of that is significant investment in the financial services sector.”
Financial Institutions’ Role in PNG’s Digitalization
Lead Banks: Having set the objective to achieve the K350 million modernization program up to 2026, PNG’s largest bank, BSP Financial Group, is upbeat on digitalization.
PNG’s second-largest bank, Kina Bank, is also making large-scale investments.
“We’ve had upgrades to our core banking system, mobile offering, and corporate online banking over the course of the year,” said Greg Pawson, who was succeeded as CEO by Ivan Vidovich in early 2025, after seven years at the helm. “Our digital revenues are growing by about 35 per cent year-on-year.”
In-Sync with Neighbouring Markets: PNG’s banks are playing a key role in shaping up a digital economy in a bid to be in-sync with the neighboring markets, says Brett Hooker, who completed his term as Managing Director at Westpac PNG at the start of 2025. The Australia-headquartered bank recently recommitted itself to the PNG market.
“The big agenda item for us for the next two years is investment in our own infrastructure, all with a view to expanding our digital reach – particularly to reach out to regional locations,” he says.
All three new banks that have entered the PNG market in the past year, CreditBank PNG, TISA Bank, and National Banking Corporation, have seen huge investments in new core banking systems.
How Fintechs are Boosting Services
Another player in the financial services market is the finance company Moni Plus, which has made huge investments, projecting itself for a banking licence in the near future.
“It’s about becoming a more agile organisation. You have to provide your customers with better services,” explains Aho Baliki, Managing Director of Moni Plus. “Instead of people coming into our branches, they should be able to check their balances on their phones.”
The adoption of technology is also being seen in PNG’s superannuation sector.
As per Brett Hooker, some of the financial sector’s digital rollout is dependent on the country’s power and telecommunications networks continuing to improve as well.
While PNG’s telcos are indeed investing heavily in their networks, their contribution to financial inclusion might also be more direct.
Digicel PNG already has its CellMoni mobile wallet, while Vodafone PNG’s parent in Fiji offers a proven mobile money transfer service, M-PAiSA, which could also have potential in PNG.
The blockchain-enabled currency is in its infancy, but Papua New Guinea’s financial institutions are at the forefront to digitalize the country’s economy.
Inputs from Saqib malik
Editing by David Ryder