Bank of Japan (BoJ) Kicks Off CBDC Experiments With Megabanks

BoJ to Experiment Digital Yen

Beginning in the spring of 2023, the pilot program will offer experimental tests for issuing the digital yen, Japan's national digital currency. The BoJ is anticipated to work with significant private sector banks and other organizations as part of the investigation to identify and address any problems relating to consumer deposits and withdrawals from bank accounts. The experiment by the Bank of Japan, which aims to target payments made without the internet, would reportedly include testing the offline capabilities of Japan's potential CBDC.

Plans to Continue CBDC Trial

According to the article, Japan's central bank intends to continue its CBDC trial for around two years before deciding whether to launch a digital currency by 2026. The announcement comes as governments worldwide ramp up their efforts to conduct research and promote CBDC, with China taking the lead.

The majority of developed nations are working to create some sort of government-backed digital currency, and several, like China and Nigeria, have already launched public wallets. Jon Cunliffe, deputy governor of the Bank of England, said on Monday that while those trials might not succeed, central banks needed to ensure there was a widely used digital settlement asset. He cautioned that a few powerful commercial entities would otherwise control and monopolize essential payment services