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- The Bank of Japan is preparing to officially start an empirical test on Digital Currency (CBDC) issued by the Central Bank.
- Even though there isn’t any specific issuance plan for the Bank of Japan, it has planned to conduct an in-depth study of “Digital yen Currency”.
- Takeshi Kimura, director of the Settlement Bureau, said that Research on CBDC is one of the bank of Japan’s top priorities currently and it will continue to upgrade from the preparation stage of CBDC.
The Bank of Japan is preparing to officially start an empirical test on Digital Currency (CBDC) issued by the Central Bank. The idea of issuing privately led digital currency was put forward by the American Facebook company last year, and many countries are taking steps to issue it. Even though there isn’t any specific issuance plan for the Bank of Japan, it has planned to conduct an in-depth study of “Digital yen Currency”.
On July 20, the Bank of Japan set up a digital currency team of about 10 people in the settlement agency bureau. In an interview with reporters, Takeshi Kimura, director of the Settlement Bureau, said that Research on CBDC is one of the bank of Japan’s top priorities currently and it will continue to upgrade from the preparation stage of CBDC.
The Digital Yen Framework
Reports say that the start time of the empirical test has not yet been determined. In this aspect, Takeshi stated that he will consider cooperation with the private sector as the Bank of Japan cannot do it alone. The basic functions of CBDC need to have two important characteristics.
The former is “Universal”, being able to be used by anyone anywhere just like cash. While the latter is “strong resilience”, it needs to be able to not affect the use even if the power outage is encountered in a disaster. These two functions should be tested and confirmed for their realization. Other functional designs regarding privacy handling and use of balances also need to be discussed.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
