Bank of Japan prepares for pilot We have developed our own Central Bank Digital Currency (CBDC), the Digital Yen, with the support of three top banks and regional institutions. The pilot program, estimated to last two years, will focus on testing the currency via several transactions and experimenting with its functionality in environments without internet connectivity.
Bank of Japan Trials Digital Yen CBDC
Bank of Japan Plans to Partner with Three Top Banks to Test Functionality of Digital Yen Version of CBDCAccording to the Nikkeithere are also some regional bodies. Results from the pilot program, reportedly set to run for two years, will be key to the government’s decision to actually develop the digital circle.
The pilot program will include a variety of tests to determine currency behavior during routine transactions such as deposits and withdrawals. Banks also test the functionality during emergencies when Internet connectivity is limited or simply unavailable.
This will be his first CBDC test conducted jointly by the Bank of Japan with other financial institutions. Since April 2021, the bank has been running a proof of concept testing the feasibility of the Digital Yen and its core features and functionality. The agency announced the second phase of these tests in March 2021.
No decision on issuance yet
Decisions have yet been made on the functionality of the currency and the possible issuance of a digital yen. not.
Bank of Japan President Haruhiko Kuroda said on March 29 that the bank had no current intention to issue a CBDC, and that these tests were “intention to prepare to respond to changing circumstances.” There is,” he declared. In an appropriate manner, with a view to ensuring the stability and efficiency of the payment system as a whole.”
It must be supported by a legal system that needs to be defined.
Other countries such as China have already issued CBDCs. The European Union is now conducting his two-year test of the feasibility of issuing a digital euro, and the Federal Reserve Bank of New York announced on November 19 that he will be conducting a proof-of-concept digital dollar for optimization purposes. announced that it will test Village.
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