Japan is preparing a program to launch a digital currency
2023.02.17 03:38
Japan is preparing a program to launch a digital currency
By Tiffany Smith
Budrigannews.com – According to a statement released on Friday by Japan’s central bank, a pilot program to test the use of a digital yen will begin in April. This move brings Japan into the growing number of nations attempting to launch a central bank digital currency (CBDC) before China.
Following two years of testing to determine whether to issue a CBDC, the Bank of Japan (BOJ) made the widely anticipated move. Additionally, it occurs prior to the transfer of BOJ leadership to academic Kazuo Ueda, who is anticipated to succeed incumbent Haruhiko Kuroda. April marks the end of Kuroda’s second five-year term.
In his opening remarks to the central bank’s meeting with executives from the private sector, BOJ Executive Director Shinichi Uchida stated, “Our hope is that the pilot programme will lead to improved designs through discussion with private businesses.”
Uchida stated that the BOJ will simulate transactions with private financial institutions in a test environment as part of the pilot program. He stated that it does not intend to conduct actual transactions between retailers and consumers.
The bank stated that the program will assist the BOJ in being prepared in the event that the government decides to issue a digital yen.
Uchida, who has been appointed as the next BOJ deputy governor by the government, stated, “If a CBDC were to be issued in the future, exploring its framework in such a phased manner and engaging in highly transparent communication with the private sector are necessary steps to take for adoption in society.”
Japan and other advanced economies are attempting to catch up to China, which is leading a global race to develop CBDCs and has intensified retail payment pilot programs.
A fully digital dollar that some have referred to as Fedcoin has also been the subject of investigation by the Federal Reserve of the United States. According to Fed leaders, elected leaders would need to support the launch of such an asset.
