According to an official announcement released on Monday, the Bank of Japan launched an experimental concept for a central bank digital currency, or CBDC.
After the initial preparation of the technical feasibility test of the central bank’s basic functions and functions for a central bank in early 2021, the Bank of Japan is now beginning to test the central bank’s digital currency in its first phase. At this stage, the bank plans to develop a testing environment for the central bank’s digital currency system and to test the basic functions related to the payment, issuance, distribution, and redemption of the central bank’s digital currencies.
According to the report, this stage is expected to be completed by March 2022.
The Bank of Japan originally announced plans to launch a CBDC test in October 2021. The bank stressed that while it “has no plan to issue a central bank digital currency” in terms of ensuring stability and efficiency in the payment and settlement systems in general, it is still important to prepare for. Circumstances change accordingly. ”
According to the CBDC trial first roadmap, the bank plans to launch a pilot CBDC program with payment service providers and end users after completing the second exam. In this stage, additional CBDC features will be implemented in the testing environment developed in the first stage, and their feasibility will be determined.
The Bank of Japan recently announced the creation of a Liaison and Coordination Committee to work with the private sector on the upcoming CBD CBD pilot projects.