Shibuya-ku, Tokyo, Japan
Saturday, May 27, 2023

Asia's New Frontier of Innovation: Japan Leads the Charge in Fostering “Co-Creative” Future with Indo-Pacific to Promote Economic Growth

PM Kishida spotlights Japan's role in boosting Indo-Pacific innovation, citing SORAMITSU's work on Bakong, Asia's first central bank digital currency.

Speaking at the Future of Asia forum organized by Nikkei in Tokyo, Japanese Prime Minister Fumio Kishida emphasized the importance of "co-creating" the future with Asian partners to address regional challenges and promote economic growth.

As part of this co-creative approach, Japan is committed to supporting startups in the Indo-Pacific region, which he referred to as the "new frontier of innovation."

In parallel with these developments, Asia's burgeoning fintech landscape is leveraging the power of blockchain technology, positioning the region as a major hub of innovation. Fumio Kishida highlighted Cambodia's Bakong central bank digital currency project as an example of successful international collaboration and innovation, which SORAMITSU had the privilege to develop, and recalled his vision of "[...]creating a second and third Bakong by creating a chain of innovation that transcends national borders,"

Bakong, the first central bank digital currency in Asia, allows underbanked individuals to make money transfers using their smartphones, as well as providing a blockchain-backed infrastructure to Cambodia's Central Bank. Kishida expressed his belief in the potential for more innovations like Bakong and envisions creating a "chain of innovation" that transcends national borders.

Based on SORAMITSU's previous press release on supporting the Asian fintech momentum through Central Bank Digital Assets and Digital Risk Management, Andrew Wong, COO of SORAMITSU Group, mentioned: "To maintain its core values and long-term competitiveness, the Asia-Pacific region has invested in the foundations that can enable it to build a culture of innovation and entrepreneurship. At SORAMITSU, we are humbled and honored to support this effort in a meaningful way."

While Western nations continue to deliberate on adopting CBDCs and CBDAs, Asia is already taking substantial strides forward, with countries like Cambodia and Lao PDR leading the way.

In conclusion, Japan's commitment and our efforts at SORAMITSU are aligned with establishing the Asia-Pacific region as an emerging leader in the adoption of blockchain technology to propel economic growth in the area.

The advancements we are witnessing and contributing to in Asia offer invaluable insights for the West and invite opportunities for global collaboration and shared growth in the rapidly evolving, interconnected world of fintech.

SORAMITSU is an award-winning global financial technology company with expertise in developing blockchain-based solutions for digital asset and identity management. Our mission is to use blockchain to promote innovation and solve pressing societal challenges.

SORAMITSU is the developer of and major contributor to the open-source blockchain platform Hyperledger Iroha, which is tailored for enterprise and public-sector use. Hyperledger Iroha, a project of Hyperledger Foundation, part of the Linux Foundation, has a permissions system that is scalable and performant.
Utilizing blockchain, SORAMITSU has developed a digital currency for the National Bank of Cambodia, a CBDC Proof-of-Concept with the Bank of the Lao PDR, a closed-loop payment system for the University of Aizu in Japan, an identity verification system prototype for Bank Central Asia in Indonesia, we were finalists in the Monetary Authority of Singapore CBDC Challenge, and are currently participating in Asia-Pacific's first proof-of-concept test of a cross-border, multi-currency security settlement system using distributed ledger technology with the Asian Development Bank. We have also conducted proof-of-concept tests for several major Japanese enterprises, and are active contributors to open source projects, such as Klaytn, South Korea's leading Layer-1 blockchain, KAGOME, the C++ Polkadot Host implementation, the SORA crypto-economic system, the Polkaswap DEX, and the DeFi wallet, Fearless Wallet.

Based on these experiences, SORAMITSU aims to deploy cutting-edge technology on a global level in order to expedite financial inclusion and health, mitigate economic inefficiencies, and contribute to the fulfilment of the Sustainable Development Goals.

Supporting the Asian Fintech Momentum Through Central Bank Digital Assets and Digital Risk Management
As the West lags behind with innovation and policy, Asian countries such as Cambodia and Lao PDR place themselves at the forefront of implementing blockchain-based financial technologies.