President of the Bank of Japan Kuroda “Start CBDC pilot project from spring”

Bank of Japan [Photo: Wikimedia]
Bank of Japan [Photo: Wikimedia]

[Digital Today Reporter Hyun-Woo Choo] The Bank of Japan has once again formalized the digital currency (CBDC) business issued by the central bank. The pilot project is planned to be carried out within two quarters.

According to Coinpost on the 16th (local time), the governor of the Bank of Japan Haruhiko Kuroda said through a fintech conference hosted by the Nihongezai Shimbun that “the CBDC pilot project will be launched from this spring.”

The Bank of Japan announced last year that it will implement the CBDC pilot project schedule in the first half of 2021. However, the specific timing was not disclosed, but this time, Governor Kuroda reconfirmed. It is interpreted to mean that it will be implemented within two quarters at the latest.

Governor Kuroda emphasized, “The policy of starting the CBDC pilot project remains unchanged. From the viewpoint of securing the stability and efficiency of the entire payment system, it is important to prepare in advance so that it can accurately respond to various environmental changes in the future.” .

It is in his view that it is not appropriate to initiate a review at the point where future CBDC issuance is necessary. For this reason, it made clear the position that specific plans and circumstances for the issuance of CBDC are needed.

The introduction of CBDC by the Bank of Japan is expected to go through a step-by-step process. The first step is to demonstrate actual operation by recording the digital yen issuance and distribution records on a distributed ledger. It is known that after going through an empirical test for about a year, subsequent steps such as full-scale private use will be carried out according to the results.

Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.