Bank of Japan Launches a Pilot Program To Issue Digital Yen

Key Points: A pilot program will be launched in Japan in April to evaluate the use of the digital yen. It is Japan’s equivalent to the CBDC.
Although China’s digital currency continues to dominate international CBDC races, the BoJ did proof-of-concept testing of the digital yen more than two years before making the decision.
Japan will launch a pilot program in April to test the use of a digital currency. This follows two years of testing by the Bank of Japan (BoJ), which determined whether it would issue a CBDC. It also happened before Haruhikokuroda, the current Bank of Japan chief, handed the gavel to scholar KazuoUeda. April marks Kuroda’s second five year tenure. Shinichi Uchida, the BoJ Executive Director, stated that the scheme would allow the BoJ to be ready in case the government issues a digital currency.
“Principles of PoCs were formerly primarily the central system. We plan to create a system of experiments under the pilot program. This system would include a central system, intermediate network systems, intermediary system, and endpoint devices. We will then test the end-to–end process flow and outline the challenges and measures for connecting the experimental system to external ones.
Uchida stated that the BOJ would replicate transactions with financial institutions in a test setting as part of the pilot program. Uchida stated that the BOJ does not plan to conduct actual transactions between customers and shops. Japan is leading the global race for CBDCs. Japan has also accelerated the development pilot programs for retail payments. The Central Bank states that the digital yuan was tested in a variety of locations and will continue to use it in cutting-edge ways over the next few years. The US Federal Reserve is also investigating ways to introduce Fedcoin (a digital dollar). According to Fed officials elected officials would have to approve the launch of such assets. We encourage you to do your own research before investing.Join us to keep track of news: NewsTags: Bank of JapanBOJCBDCChinadigital yenShinichi Uchida