Fantom Foundation is going to be working with Tajikistan’s Orienbank to create the country’s first CBDC, by integrating the Iron Bank protocol.
Fantom Leads National CBDC Program
Working in tandem with the National Bank of Tajikistan and Orienbank, Fantom will be digitizing the Tajikistani currency, Somoni for retail and commercial payment platforms. The Fantom Foundation announced the partnership through a blog post on Monday, where they also discussed how to address foreign currency conversions that are frequently regarded as a limitation of CBDCs. To resolve this issue, the platform is planning to integrate Andre Cronje’s Iron Bank protocol for seamless, low-fee foreign exchange with simple flat on- and off-ramp.
By partnering with Orienbank, which is one of Tajikistan’s oldest and biggest banks, Fantom will become one of the first blockchain protocols to build a digital currency for a national government. The project will be rolled out nationally by Orienbank and Fantom under the sandbox regulation of the National Bank of Tajikistan, but only after thorough testing, refinements and standardized trials.
The upcoming CBDC born out of this union is targeted to promote financial inclusion, support financial stability and improve tax collection. Fantom’s CBDC will also help the country reduce its overall remittance costs and install safeguards for monetary sovereignty.
Speaking on the agreement, Michael Kong, the CEO of Fantom commented,
“This agreement with Orienbank validates our efforts to build a viable CBDC solution combining research into the economics and usability of digital currencies with the technology of our high-speed, low-cost platform. It is an honor to be working with the Republic of Tajikistan, and we look forward to playing a key role in building the financial system of the future with them.”
The project is further reaffirming Fantom as one of the most prominent key solutions provider for governments choosing to follow the digital economy path. These digital currency programs all need to be built on a foundation of speed and security. The Fantom network boasts of near-zero fees and rapid transactional ability, which makes it the ideal CBDC vehicle.
New NFT Marketplace Built On Fantom
The Orienbank agreement demonstrates Fantom’s emergence as a key solutions provider for governments seeking to transition to a modern, digital economy. The Fantom network’s near-zero fees and fast, deterministic transaction finality make it an ideal foundation for CBDC systems, in which reliable speed and security are essential.
Fantom has been in the news lately for its growing DeFi ecosystem and noteworthy upgrades that is pushing it higher in crypto rankings. Most recently, Fantom announced the launch of Artion, an open-source, feature-filled, quick, and inexpensive NFT marketplace with 0% commissions and near-zero transaction costs.
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