The Bank of Japan may launch the second phase of a central bank digital currency demonstration next spring

The Bank of Japan is planning to conduct the second stage of the Central Bank Digital Currency (CBDC) demonstration in the spring of next year, 2022. This was reported by the Sankei Shimbun on January 19.。

According to this report, the Bank of Japan will conduct the first stage of the experiment for about a year starting from this spring onwards, after which the experiment will move to the second stage. Finally, the Bank of Japan will verify the practical use of the digital currency by conducting the third stage of the experiment, according to the report.

On October 9 last year, the Bank of Japan published “The Bank of Japan’s Policy on Central Bank Digital Currency”. In that report, the Bank of Japan says that society’s need for a central bank digital currency (CBDC) may grow rapidly in the future. It said, “At present, we have no plans to issue CBDCs, but from the perspective of ensuring the stability and efficiency of the overall payment and settlement system, we believe it is important to be well prepared to respond appropriately to various future changes in the environment. The Bank has decided to present its policy on CBDC for general use, which is expected to be used by a wide range of entities including individuals and corporations.

Click here for a report on the “Bank of Japan’s Policy on Central Bank Digital Currency”.

(images:iStock/Andrey-Suslov・stockdevil・Osamu-Takeishi)