The project aims to provide demonstration experiments for the issuance of Japan’s national digital currency, the digital yen, starting in spring 2023.
As part of the test, The Bank of Japan is expected to cooperate with major private banks and other organizations to detect and resolve any problems related to customer deposits and withdrawals from bank accounts. According to the report, the pilot will consist of testing the offline functionality of Japan’s potential CBDC, aimed at offline payments.
Japan’s central bank plans to continue its CBDC experiment for about two years and make a decision on issuing a digital currency by 2026, the report notes.
The news comes at a time when countries around the world are increasingly launching CBDC research and development initiatives, with countries like China leading the global CBDC race.
As Cointelegraph reported on Nov. 22, the Reserve Bank of India is preparing to launch a digital rupee pilot in collaboration with major local banks, including the State Bank of India, in December. In mid-November, the Federal Reserve Bank of New York Innovation Center announced the launch of a 12-week CBDC pilot in collaboration with banking giants such as BNY Mellon, Citi, HSBC, and others.
While most of the world has rushed to launch a CBDC, some countries like Denmark have abandoned the digital currency race.. Among the reasons for abandoning their CBDC or related projects, central banks listed potential difficulties for the private sector, questionable value and profits, and other difficulties. Even so, no central bank has completely ruled out the possibility of launching a CBDC.
Source: Ambito
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