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ECONOMY

BOJ begins testing digital currency

  • April 5, 2021
  • , Jiji Press , 9:24 p.m.
  • English Press

Tokyo, April 5 (Jiji Press)–The Bank of Japan said Monday it has started examining the function and feasibility of a central bank digital currency.

 

The first-stage test will run through March 2022, the BOJ said.

 

While saying it has no plans at this time to issue a CBDC, the BOJ will go ahead with preparations in case the need for it increases.

 

China has embarked on a large-scale CBDC experiment involving consumers, while U.S. and European central banks are conducting CBDC research.

 

In the first stage, the BOJ will recreate CBDC transactions virtually to confirm the certainty of computer processing and the time it takes.

 

The BOJ will narrow down ways of recording transaction data through the experiment. It will share test results with the government and private financial institutions.

 

In the second stage, which is expected to start sometime in 2022, functions such as privacy protection and measures against money laundering will be examined. The BOJ will conduct a third-stage test involving companies and consumers if needed.

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