Bank Of Japan To Pilot Test The “Digital Yen”
Milestone Date: February 17, 2023
The Bank of Japan shared that it will launch a pilot program to test its central bank digital currency (CBDC), the “Digital Yen,” in April 2023. The institution kicked off a proof-of-concept in April 2021 in which it built an experimental environment centered around a CBDC ledger, which is the foundation of a CBDC system.
The pilot program is expected to expand on the CBDC ecosystem and includes private companies to help with testing via simulated transactions. In public remarks, Shinichi Uchida, Executive Director of the Bank of Japan, stated, “Our hope is that the pilot program will lead to improved designs through discussion with private businesses. Topics on the agenda currently include measures and potential challenges for connecting the experimental system with external ones, alternative data models and architectures for offline payments, the optimal design of the CBDC system in providing value-added services, and challenges and technologies or functions that could become necessary where a touchpoint with users arises.”
It was reported that at least three of Japan’s megabanks will participate in the program. If the pilot program is successful, it could be the path to more cryptocurrency support in Japan.
By Elizabeth Morrison
Published:April 19, 2023
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