Japan's Study Group on Digital Currency Settlement Infrastructure has announced that a two-layered digital yen will be piloted in 2021.
Toyota Systems has partnered with digital currency exchange DeCurret on the pilot, which will see the participation of the company’s 2,500 staff members.
Seven companies are reportedly preparing to invest in the new platform, which relies on blockchain technology to secure recorded data against risks from external tampering and unauthorized access.
They are seeking to identify the principles necessary for any CBDC, to help other central banks around the world to meet their public policy objectives.
In an announcement, TaoTao confirmed it has become a wholly owned subsidiary of the group’s SBI Liquidity Market.
Dr. Takayoshi Doi was arrested in connection with allegedly buying $46,000 worth of NEM that had been stolen from the exchange.
Ryozo Himino, incoming head of the Financial Services Agency, has voiced his concern over calls to relax the current digital currency laws.
Bank of Japan has been experimenting with a central bank digital currency, although it is yet to officially develop a digital currency.
Japan’s interest in a digital yen went up a notch after the government included it in its official economic plan. Japan has also been doing extensive research.
The Bank of Japan has been exploring the technical feasibility of a CBDC and in its latest paper; it dives into offline usage for those without smartphones.