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| The Bank of Japan begins experiments with issuing digital currency |
The Bank of Japan (BOJ) launched an experiment on Monday to examine the feasibility of issuing digital currencies to a central bank of the central bank. This enabled it to work with other central banks to track the Bank of Japan innovation in this area. private sector.
"We are preparing to test the CBDC at the start of fiscal year 2021 in order to test the basic functions and technical feasibility of the CBDC digital currency," the Bank of Japan said in a statement.
He added: After completing the necessary preparations, today the first phase of PoC will start. The bank plans to develop a testing environment for the central bank's digital currency system and to conduct basic functional trials in the first phase of PoC. As a means of payment, it is necessary for the central bank digital currency system, such as: Example: issuance, distribution and recycling.
This phase will continue until March 2022, which corresponds to a one-year period. Then the Bank of Japan enters the second phase of the experiment, which checks more detailed functions, such as the number of digital currencies. Any entity can own it.
The Bank of Japan will launch a pilot program that will include payment service providers and end users if needed, Shinichi Uchida, chief executive of Bank of Japan Shinichi Uchida, said last month.
Uchida told the policymaker and banking committee who were investigating the CBC coin: While the Bank of Japan's position has not changed, it currently has no plans to issue central bank digital currencies. We think the experiments can be done in Japan. This step is a necessary step.
Global central banks are trying to develop digital currencies to modernize their financial systems, avoid the threat of cryptocurrencies, and speed up domestic and international payments.
Although China ranks first on the list, the Bank of Japan has stepped up efforts to catch up with the plan it announced in October and to experiment with how to operate its own digital currency.