BoJ to Launch Pilot CBDC in April

The Bank of Japan (BoJ) plans to launch a pilot programme to test the digital yen in April 2023. This is stated in the statement.

The aim of the phase is to test the ‘technical feasibility’ of a CBDC and extend the experiment to model an ecosystem involving companies. No real transactions are planned during the pilot.

The BoJ said there is a need for consultations with the private sector on issues such as alternative data models, offline payment architectures and other key design elements.

The first phase of experiments with the national digital currency started in Japan in spring 2021.

In July, a representative of the ruling Liberal Democratic Party, Hideki Murai, said that the state will develop a more detailed CBDC project by the end of 2022.

Later, the central bank governor Haruhiko Kuroda noted that the regulator will decide on the advisability of issuing the digital yen after comprehensive testing.

Earlier in November 2022, BoJ, in partnership with three megabanks announced a pilot project for the national digital currency.