NEW YORK--(BUSINESS WIRE)--The Fantom Foundation announced that it has signed a Memorandum of Understanding with the OJSC Orienbank, one of the largest banks in Tajikistan, to trial a hybrid CBDC platform for deployment across the country. This monumental agreement establishes Fantom as one of the first blockchain projects globally to begin development of a CBDC solution for a national government.
Fantom and Orienbank will work with the National Bank of Tajikistan to build commercial and retail payment networks for the E-SOM, the digitized version of the Tajikistani Somoni. By integrating developer Andre Cronje’s Iron Bank protocol, the Fantom-based product will also include a low-fee foreign exchange with simple fiat on- and off-ramp. Fantom, Orienbank, and the National Bank will aim for a nationwide rollout upon completion of a successful demonstration.
The Orienbank deal signals Fantom’s emergence as a major player in public-sector blockchain initiatives. Fantom offers transformative technologies for governments seeking to transition to the digital economy. Fantom provides the security, reliability, and scalability that intensive digital currency applications require.
Digital currencies have been a hot topic lately. Consumers increasingly prefer electronic payments, and Central Banks are eager to offer solutions encouraging the use of national currencies rather than third-party digital payment systems.
In countries with large, unbanked populations, CBDC can encourage financial inclusion. Fantom CBDC makes banking available through mobile apps connecting to digital wallets. Beyond accessibility, connectivity allows financial institutions to extend services like microloans to underserved areas.
The CBDC solution will initially undergo a period of testing and refinement. Following initial trials, Orienbank and Fantom will seek to roll out the product nationally under the sandbox regulation of National Bank of Tajikistan.
The Fantom solution drastically reduces costs by eliminating intermediaries and transaction fees while accelerating payment processing. Functionality added by the aforementioned Iron Bank protocol makes it easy for remittance senders and receivers to work with local currencies. Other benefits that Fantom offers include automatic tax deduction, streamlined monetary policy, and more.
From interbank and large business payment systems to small business transactions and P2P money transfers, Fantom CBDC is poised to transform existing currency and payments ecosystems in Tajikistan and beyond.