PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Japan Plans to Launch Pilot Program and Test Digital Yen 

Connie Diaz De Teran by Connie Diaz De Teran
April 18, 2023
in Analysts Coverage, Digital Currency
0
Bank of Japan
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Japan’s Ministry of Finance is scheduled to hold a meeting of experts on April 21 to consider the country’s future with a central bank digital currency (CBDC), according to Reuters. Nine experts—including economists, academics, a consumer group representative, and a lawyer—will meet regularly and compile a report on their feedback and recommendations by the end of the year.  

Two Years in the Making 

Bank of Japan (BOJ) has been piloting programs for two years, trying to arrive at a decision of whether it should issue its own CBDC. Back in February, it was announced that the country would launch a pilot program this spring to test the use of a digital yen.  

When the program launches, pilot program, Bank of Japan will carry out simulated transactions with private financial institutions, but within a test environment. Real transactions between retailers and consumers will not be performed.  

This test program aims to prepare Bank of Japan, should the Japanese government decide to issue a digital yen.  

Kazuo Uchida, who has been named as the next BOJ deputy governor by the government, said in a press release: 

“If a CBDC were to be issued in the future, exploring its framework in such a phased manner and engaging in highly transparent communication with the private sector are necessary steps to take for adoption in society.” 

As Japan continues to be on the fence on their decision to issue their own CBDC, the pilot program could last several years.  

A finance ministry official shared with reporters: 

“We understand the BOJ’s study is making a steady headway. However, we have not at all decided on whether Japan will issue a CBDC.” 

For now, the Financial Services Industry and the BOJ will attend the meeting as observers during the panel.  

Looking Ahead 

As many countries continue exploring the road to issuing their own CBDCs, something that has not been considered is some of the risks associated with it. What central banks must consider is that a CBDC that is poorly designed could potentially impact financial stability, monetary policy implementation, and payment systems. Therefore, some governments that have been hesitant to issue their own CBDCs have well-founded reasons.  

Tags: Bank of JapanCBDCDigital CurrencyJapan
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Google Wallet Expands Features

    Google Wallet Continues to Bet on Digital with Expanded Features

    June 2, 2023
    digital value

    How Embracing Digital Value Can Help Solve the B2C Payments Conundrum

    June 1, 2023
    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from CSG Forte: