The Bank of Japan plans to launch a digital yen pilot project next spring; However, the bank still has a long way to go to decide whether to continue its publishing efforts.
to the the report Cryptonews The Bank of Japan seems to be aware that China is leading the way with a commitment to release its central bank digital currency (CBDC). Meanwhile, other central banks are entering advanced stages of their projects. In this way, the Bank of Japan wants to prepare a response to the changes in the international space.
The Bank of Japan has called its initial plan a “first phase test.” The bank uses a token that performs the main operations of a central bank digital currency. The pilot project will also focus on distribution and digital currency issuance issues. The Bank of Japan wants to test Ledger technology, transaction history innovations, and cross-cutting strategies with private sector businesses.
The Bank of Japan has announced that its initial pilot project will take about a year. It will then enter the second stage, which is a feasibility test. This will happen when the results of the first phase are promising enough.
Tokyo initially avoided the idea of publishing digital yen. Some financial and government executives argued that existing electronic payment systems in the private sector had reduced the need for alternatives published by the central bank.
However, Japan is notorious for its dependence on cash; This is especially true for older citizens; An unusual contradiction in a country that is one of the most technologically advanced in the world.
The rise of the digital yuan, which is set to begin before the Beijing 2022 Winter Olympics (another 12 months), seems to have encouraged central banks in Japan and South Korea to take action.