Japan Bank starts CBDC Trial of Digital Yen
The Bank of Japan (BoJ) has announced that central bank digital currency (CBDC) trials have begun. The goal of the first step, Proof of Concept (PoC), which will run from March 2022 to March 2023, is to investigate the technical feasibility of a digital yen. The central bank has yet to decide whether or not to pursue a CBDC.
It will test basic functions like issuance, delivery, and redemption, according to a brief release.
The central bank released a CBDC document six months ago that described three stages of trials, including two Proofs of Concept phases followed by a pilot.
Even though cash use is still strong, the Bank of Japan wants to be ready for the transition. It also wishes to assist in the creation of a digital society. In addition, the central bank is keen to increase the quality of payments and settlements.
Other digital currency campaigns, on the other hand, are moving forward. The Bahamas unveiled its Sand dollar last year. Other Caribbean states follow suit, with the Eastern Caribbean launching a blockchain-based pilot and Jamaica announcing CBDC plans that do not include blockchain.