A central bank digital currency (CBDC) platform for the central Asian country of Tajikistan will be built on the Fantom blockchain, the foundation behind the blockchain said Monday.
- The Fantom Foundation will work with OJSC Orienbank, one of the oldest banks in Tajikistan, on a CBDC product for use in the country.
- The agreement makes Fantom one of the first blockchain projects to begin development of a CBDC platform for use by a national government, the foundation said.
- Orienbank and Fantom will join the National Bank of Tajikistan in developing commercial and retail payment networks for a digitized Tajikistani somoni (E-SOM).
- While almost every major economy in the world has demonstrated an intent to explore the potentials of a CBDC, developing nations such as Tajikistan may find more use cases for them because of their potential to reduce costs of remittances.
- Remittance inflows to Tajikistan made up 26% of the country’s gross domestic product last year, according to data from the World Bank.