The central bank of Japan has launched a proof of concept (PoC) test for the government’s cryptocurrency. This testing phase will last until March 2022.
According to a statement from the Bank of Japan, after initial preparations for testing the technical feasibility of the main functions and capabilities of the state cryptocurrency in early 2021, the Central Bank begins testing a proof of concept. At this stage, it is planned to develop a test environment for the system and conduct experiments with the main functions related to payment, issuance, distribution and redemption of the state cryptocurrency. This testing phase is expected to be completed by March 2022.
Last October, Bank of Japan Governor Haruhiko Kuroda announced that the central bank will begin testing its own cryptocurrency in spring 2021. In March, he confirmed that the regulator would begin experiments soon. The Central Bank of Japan noted that while “it is not planning to issue a government cryptocurrency”, in terms of ensuring the stability and efficiency of the payment and settlement systems, it is still important to prepare for “changes in circumstances in an appropriate manner.”
According to the initial roadmap, the bank plans to launch a pilot program with payment service providers and end users after completing the second phase of testing. At this stage, additional functions of the state cryptocurrency will be implemented in the test environment developed in the first stage, and their feasibility will be determined.
Recall that last month, the Bank of Japan announced the creation of a Committee on Government Digital Currencies, and six Chinese banks began testing digital yuan wallets.
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