The Bank of Japan announced on Monday that the central bank digital currency (CBDC) experiments have started phase 1.
The first phase of the experiments will focus on testing key functions of CBDC as a means of payment, such as regulation, distribution and redemption. The phase will be carried out until March 1, 2022.
The Bank of Japan will move to Phase 2 to test the more detailed functions of the CBDC, as announced last October. If necessary, the central bank will move to Stage 3, where private enterprises and end users will participate in a pilot program.
Central bank Governor Shinichi Uchida said last month that the Bank of Japan does not currently have a plan to issue a CBDC, but wants to stay prepared in case the need arises in the future.
“We believe starting an experiment at this stage is a necessary step,” said Uchida. Given the current factors, including technological developments at home and abroad, there is a reasonable possibility that CBDC will provide a payment and payment instrument and such systems will become global standards. ” It’s in the description.
As stated in The Block’s latest CBDC report, central banks around the world are looking to develop digital currencies. Currently, China is leading the pack as it is closer to launching the digital yuan after more than six years of research and development.