Japan announces CBDC testing
In Japan, they started to get accustomed to CBDC.
Key Barriers to Mass Production: Availability and Resilience to Fraud.
No exact release date yet.
International consortium of news organizations developing transparency standards.
So far, the Japanese authorities want to study the basis and technical nuances of the state digital currency before releasing a product..
The Bank of Japan has announced its intention to begin testing the central bank‘s digital currency (CBDC)..
The bank announced this in the report “Technical Barriers to CBDC”.
Bank admits potential digital currency could be an alternative to traditional yen.
However, for now, the bank does not intend to issue any digital asset, but emphasizes that it is ready to study the concept due to the wider use of digital payments..
As the reason for this interest in CBDC, the Japanese regulator cites the high demand for cashless payments due to the coronavirus pandemic and the transition of business to contactless or card transactions..
However, this is far from the only reason for Japan to take a closer look at CBDC..
The Chinese authorities have been actively developing a national digital currency for a long time, the launch of which is aimed exactly at the 2022 Winter Olympics in Beijing.
The Bank of Japan wants to pay special attention to two components of a potential CBDC: resistance to fraud and ubiquitous access.
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The bank fears that the sharp transition to digital currency will be critical for vulnerable or elderly members of society.
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According to Nikkei research, in 2018 in Japan, only 65% of Japanese citizens had a smartphone.
Thus, the Bank of Japan wants to explore the possibility of accessing CBDC even in the absence of mobile devices.
The start date of the CBDC study has not been announced, however, the regulator announced its intention to soon collaborate with other financial institutions and technology companies..
What do you think? Will Japan eventually release CBDC? Share your thoughts with us in the comments and join the discussion in our Telegram channel.
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