Japan: Central Bank Says CBDC Trials will Commence in Q2 2021
The Governor of the Bank of Japan (BOJ) revealed plans by the central bank to begin testing its proposed central bank digital currency (CBDC) in the Spring of 2021.
Japan Eyes CBDC Tests in 2021
According to a Reuters report on Monday (October 12, 2020), the BOJ Chief Haruhiko Kuroda stated that Japan’s central bank will start trialing its digital yen in 2021. The latest development signals the country’s progressive CBDC efforts.
Kuroda made this revelation during an online seminar put together by the Institute of International Finance. During his speech, the BOJ Governor declared that CBDCs would not oust private payment and settlement service, stating:
“It’s very important that central bank digital currencies not replace or eliminate private-sector payment and settlement services.”
Kuroda’s comments on Monday came as Kozo Yamamoto, leader of the Liberal Democratic Party (LDP) also called for a fresh legislative mandate for the central bank to issue a CBDC. According to Yamamoto, the BOJ should also update its roles and responsibilities regarding matters like inflation and job creation.
Yamamoto is one of the staunch supporters of a digital yen. Back in February, the former member of Japan’s finance ministry advised the BOJ to plan towards issuing a digital yen within two to three years.
Digital Yen in Response to China’s DCEP
Japan has been forward about its CBDC project in recent times, following China’s speedy digital yuan development. As reported by BTCManager in July, the BOJ stated that its digital yen was now “top priority”. In the same month, the Japanese central bank appointed its chief economist to head the CBDC research department.
Other countries in the APAC region are also increasing efforts on their proposed CBDC projects, as China continues to stay ahead of the pack. A report revealed that China’s CBDC has processed $160 million in payments from over three million transactions.
South Korea has completed the first stage of its CBDC pilot program and has entered stage two. According to a recent BTCManager report, South Korea’s central bank plans to enter the distribution and testing stage by early 2021.
Thailand CBDC project has also reached the third stage of development, which involves the testing of the proposed digital currency for transactions among large corporations. The country’s central bank revealed it could also test the CBDC with the public after carrying out comprehensive research.
