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Japan to prove the concept of digital currency, CBDC pilot begins!

The Bank of Japan is the first to prove the concept of digital currency. The first phase of the Japan CBDC pilot (pre-production) is expected to be completed by March 2022.

According to Cointelegraph, a media specializing in cryptocurrency on the 5th (local time), the Central Bank of Japan (BoJ) officially announced that it has launched a proof of concept for the central bank digital currency (CBDC).

Following initial preparations to test the technical feasibility of core CBDC functions and functions in early 2021, the Bank of Japan began CBDC experiments in the first phase from this day. At this stage, we plan to develop a test environment for the CBDC system and conduct experiments on basic functions related to payment, issuance, distribution, and redemption of CBDC.

According to the announcement, this pilot phase is expected to be completed by March 2022.

The BoJ originally announced plans to conduct CBDC trials from October 2021. The bank emphasized that although there is no’CBDC issuance plan’ in terms of ensuring the stability and efficiency of the entire payment and settlement system, it is still important to’prepare’ for changes in the situation in an appropriate way.

In the original CBDC experiment roadmap, the bank was expected to start a pilot CBDC program in which payment service providers and end users participate after completing the second phase of testing. In addition, it implements additional CBDC functions in the test environment developed in step 1 and determines its feasibility.

The BoJ also recently announced plans to establish a liaison coordination committee to cooperate with the private sector on upcoming CBDC pilots.

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