A recent poll shows that support for CBDCs is stronger in emerging markets than in nations with solid values around privacy, while some 20% of Japanese show unfamiliarity with tokenized currencies.
The Bank of Japan clarified that it has yet to decide on launching a digital yen but will open a discussion with the public via a CBDC forum before making a decision.
The panel will launch in April under the Finance Ministry and will build on the two years’ worth of studies and tests by the Bank of Japan, according to reports.
BoJ Governor Haruhiko Kuroda believes that while CBDC won't completely replace existing forms of payments, it is critical in boosting the strength of the industry and rallying for financial inclusion.
The central bank digital currency pilot in April will center on testing technical areas not covered by the initial PoC stages as the BOJ attempts to find a solution to using the digital yen for offline payments.
Japan is dead set on lifting the ban on stablecoins, with authorities gathering feedback on easing restrictions, opening a pathway for seamless stablecoin trading.
The central bank stated that the pilot would be conducted with a trio of mega banks and regional banks with a keen focus on the issuance and withdrawals of the state-backed digital currency.
In collaboration with France's IDEMIA and Malaysia's Softspace, the Bank of Japan will pilot a project in preparation for the full-scale CBDC launch, beginning with a touch payment infrastructure.
The BOJ completed the first phase, which started in April last year, in which it focused on the basic functions of a CBDC, such as issuing and distribution.
Japan’s central bank will uphold simplicity in its design of a CBDC, with a senior official saying this is key in making it interoperable with payment systems.
A senior executive at the Bank of Japan has said China’s forthcoming digital currency does not pose a threat to the status of the U.S. dollar as the global reserve currency.
The central bank of Japan has started the first phase of a feasibility study with a goal of testing the CBDC’s basic functions including issuance, distribution and redemption.
