The Bank of Japan (BoJ) is preparing for the start of the second phase of the digital yen project to launch its national digital currency. The Japan National Digital Currency Project is scheduled to be operational in three phases.
To Report Cryptonews: Although the Bank of Japan is still hesitant in its official position on the release of the central bank’s digital currency, the Sankei newspaper reports that the bank is closely monitoring developments in the European Union, China and the United States. Japan’s first wants to make sure it has the right infrastructure technologies if it decides to launch a digital yen.
According to the Sunky newspaper, the Bank of Japan plans to launch the second phase of the digital yen project in the spring of 2021. At this stage, the bank is examining the performance of the digital yen in relation to the expected functions, how to regulate this national digital currency, as well as the possibility of using it offline or when the Internet is down.
The Bank of Japan has not commented on the duration of the second phase, but has made it clear that the third phase will begin immediately after. In the third phase, private companies and consumers will also be actively involved in testing the practical use of the digital yen.
Japan and South Korea have shown great interest in developing the technological capabilities needed for the central bank’s digital currency, and one of the main reasons for this is that China has snatched the lead from its traditional rivals with the launch of the digital yuan project.
Beijing is approaching the release of the digital yuan, and its global release is expected before the Winter 2022 Winter Olympics.
The European Central Bank (ECB) and the European Commission (ECB) said in a joint statement yesterday that they were examining the political, legal and technical aspects of the issues facing the digital currency. The European Central Bank will decide in mid-2021 on the launch of the Euro-Digital project.