The Bank finished its proof-of-concept testing in April and then launched a pilot program for the “digital yen” in 2021.
The Bank of Japan (BoJ) made executive director Shinichi Uchida’s opening remarks at a CBDC committee meeting public on February 17. Uchida states that the Bank chose to start a “digital yen” pilot program in April after completing its proof-of-concept testing, which started in 2021.
The usability testing will advance research into the technical viability of the “digital yen” and expand the experiment to include private enterprises in the modeling of the CBDC ecosystem. No genuine retail transactions, as stated by the official, will be done during the pilot, only simulated ones.
Uchida’s speech focuses on the future CBDC’s design and the necessity of consulting the private sector on alternative data models, offline payment structures, and other crucial system components. The CBDC forum will be established for this type of consultation.
When local media revealed the BoJ’s intention back in November 2022, the news of the CBDC pilot was eagerly awaited. The BoJ will work with at least three Japanese megabanks and regional banks, the reports said.
The restriction on foreign stable coins, which went into effect in 2022, is another something that Japanese authorities are thinking about relaxing. The revisions should be approved by June 2023, according to the Financial Services Agency of Japan. While they won’t automatically accept any foreign stablecoin into the market, they will give the go-ahead to those that pass individual inspections.