BOJ, Japanese Commercial Banks to Test Digital Currency Payments

Economy Politics

Tokyo, Nov. 23 (Jiji Press)--The Bank of Japan and Japanese commercial banks will jointly test central bank digital currency payments, starting as early as spring next year, sources familiar with the matter said Wednesday.

The test will involve the Japanese central bank and three major commercial banks as well as regional banks, the sources said.

In April last year, the BOJ started testing the basic functions of CBDCs. It moved to the second stage of the CBDC test in April this year, focusing on more complex functions including link-ups with outside systems.

Nearly 90 pct of the world's central banks are looking into CBDCs, according to the Bank for International Settlements. In China, a CBDC test involving consumers and stores is already underway.

The BOJ has said it has no plans to issue a CBDC at the moment.

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