Bank of Japan (BoJ) Officially Commences Phase 1 of CBDC Experiments
- The central bank of Japan has officially announced the “Commencement of Central Bank Digital Currency Experiments.”
Per the official document published on Monday, The Bank of Japan (BOJ) said they have been undertaking preparations to begin experiments on digital yen in the early fiscal year 2021. The banks will be testing the technical feasibility of the core functions and features required for the CBDC.
With necessary preparation now complete, Proof of Concept (PoC) Phase 1 begins starting April 5th.
Under Phase 1, the bank plans to develop a test environment for the CBDC system. It will further involve conducting experiments on the basic functions that are core to a CBDC as a payment instrument, such as issuance, distribution, and redemption, it states.
Phase 1 will be carried out through March 2022, for a period of one year.
A few months back in November, it had been reported that the country’s 30 major firms, including a few largest banks, retailers, utilities, brokerages, and telecommunication firms, will begin experiments of issuing a private digital currency this year.
As we reported last week, China’s central bank further accelerated the roll-out of its CBDC as it ran a program for the trial of its digital yuan for cross-border payments after several retail-focused trials have been conducted over the last several months.