BOJ to Start Test of Digital Currency in FY 2021
Newsfrom JapanEconomy Politics
Tokyo, Oct. 9 (Jiji Press)--The Bank of Japan said Friday that it will start testing a central bank digital currency, or CBDC, in early fiscal 2021.
The BOJ will create a system on the internet, where the basic functions of the CBDC, including its issuance and circulation, will be tested. The central bank will then work on more advanced experiments.
Although the BOJ has said that it has no plans to issue a CBDC, it will step up preparations in response to moves by China, which is ahead of other countries in the field, and Japanese Prime Minister Yoshihide Suga's policy focus on digitalization.
The BOJ assumes that private financial institutions will take an intermediary function for a CBDC that may be issued by the Japanese central bank, and that the digital currency will be used widely by general consumers, companies and others.
The test will be held in three stages. The final stage of the test will involve private businesses and consumers to examine the feasibility and safety of the digital currency as a method of payment on par with cash.
[Copyright The Jiji Press, Ltd.]