A dedicated committee established by the Bank of Japan will coordinate CBDC experiments in Japan.
According to the statement, in the first phase of practical research the central bank will test the technical feasibility of the core functions and components required for a CBDC.
As previously confirmed by Bank of Japan Governor Haruhiko Kuroda, the proof of concept (PoC) will be conducted in the new financial year, which begins on 1 April.
The central bank will involve private-sector representatives and government bodies in the research.
“The CBDC Collaboration and Coordination Committee” will allocate roles for the experiment among them. Going forward, the coordinating body will continue to consult with participants to facilitate a smooth rollout of the digital currency.
The Bank of Japan noted that they currently have no plan to issue a CBDC, but from the perspective of ensuring the stability and efficiency of the payments system, they must be prepared for possible changes.
In 2020, the bank created a new working group to study CBDC and to continue participation in joint research with regulators from other countries.