The Bank of Japan, in the first half of this year ‘digital yen’ A pilot project

Japanese digital yen is expected to be commercialized in 2023 [Photo: Digital Today]
The Bank of Japan launches a digital yen demonstration project [Photo: Digital Today]

[Digital Today Reporter Choo Hyun-woo] The Bank of Japan once again confirmed its plan to implement a pilot service for digital currency (CBDC) issued by the central bank in the first half of this year. It is a policy to proceed as originally planned without delaying or changing the schedule.

According to Coinpost on the 20th (local time), the Bank of Japan said through an NHK interview that the schedule for the’digital yen’ pilot project this spring has not changed.

First, the Bank of Japan plans to conduct a digital yen pilot project step by step in cooperation with private financial institutions.

The first step is to demonstrate actual operation by recording the digital yen issuance and distribution records on a distributed ledger. After a one-year empirical test, according to the results, follow-up steps such as full-scale private use are promoted.

The Bank of Japan set the target of issuing digital yen to’secure the same function as cash’. The goal is to create a payment method that anyone can use with confidence anytime, anywhere. Therefore, considering the elderly who are not familiar with smartphones, it is also considering providing a separate dedicated terminal.

In November of last year, Mr. Hiromi Yamaoka, head of the Bank of Japan Payments Bureau, predicted that “apart from the pilot project, there will be several difficulties before the actual issuance and execution.

According to a report by the International Settlement Bank (BIS), 53 central banks out of 66 banks around the world are participating in CBDC R&D, and six countries last year and more than 10 countries are planning to launch CBDC pilot projects this year.

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Currently, China is leading the way in introducing CBDC. From last year to early this year, the People’s Bank of China has successfully conducted two digital renminbi pilot projects in Beijing, Shanghai, and Guangzhou and other metropolitan areas.

In February this year, it is evaluated that it has entered the stage of preparation for private distribution, such as installing and operating eight digital renminbi ATM machines at two branches of the China Commercial Bank in Beijing.

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 blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.