Bank of Japan starts one year digital yen CBDC trial
Tuesday, 04 13 2021, Category: Economy, Country: Asia
Today the Bank of Japan (BoJ) confirmed that it has started central bank digital currency (CBDC) trials. The aim is to explore the technical feasibility of a digital yen in its first phase Proof of Concept (PoC) which will last for a year to March 2022. The central bank has not yet decided whether to proceed with a CBDC.
A short statement said it would trial basic functions such as issuance, distribution and redemption.
Six months ago, the central bank published a CBDC document in which it outlined three stages of trials, including two phases for Proofs of Concept followed by a pilot.
In March, BoJ Governor Haruhiko Kuroda also spoke about some of the drivers. Japan’s objectives are a little different from most countries because of the heavy use of cash in retail payments and the 2011 earthquake and tsunami, which caused widespread disruption. Hence there is a greater emphasis on the ability to execute payments offline.