Published: 01.04.2022
Article reading time:
2 minutes.
The Bank of Japan announced the completion of the first stage of testing its own digital currency and the transition to the second stage. However, the launch of the digital yen is not yet included in the plans of the regulator.
The Central Bank of Japan began testing the digital yen concept in April 2021. At this stage, the regulator was focused on working out the main functions of the state stablecoin, as well as studying the possibilities of its release, implementation and circulation. Then the governor of the Bank of Japan, Haruhiko Kuroda, said that these were just experiments with the state cryptocurrency, which did not mean that the regulator was ready to launch it. Now the Central Bank of Japan has announced that the first stage of testing has been completed, and the next stage will begin this month.
It will cover the implementation of previously developed functions of the digital yen and the study of its technical compatibility with payment services. Particular attention will be paid to creating programs to combat money laundering, protect user privacy and ensure the security of the digital yen ecosystem from hacker attacks. Options for the public to switch to a Bank of Japan digital currency will also be explored, as cash is still considered a popular payment method in the country. Therefore, a strong reliance on cash may hinder the adoption of the digital yen.
To speed up this process, the Bank of Japan said that the design of the Central Bank’s digital currency should be simple. This will allow the private sector to easily create services using it. In addition, the digital currency of the central bank should be as convenient as possible for ordinary users.
Full testing of the digital yen and public consultations may take some time. A few months ago, Kuroda announced that the decision to launch a digital yen would not be made until 2026 at the earliest.
Source: Bits
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