- The possibility of establishing a central financial agency for digital currency is being considered by the finance ministry of Japan. (CBDC).
- It is possible to convene a knowledgeable group to investigate CBDCs and the viability of releasing a digital yen.
- Additionally, the Financial institution of Japan has started a pilot project to evaluate the technological viability of a CBDC.
According to reports, the Japanese Ministry of Finance is looking into the viability of a central bank digital currency (CBDC) and plans to establish a professional group in the same vein next month. Assessing the viability of releasing a digital yen may fall under the purview of the knowledgeable panel.
According to a report by NHK, the expert group may also work on a framework for CBDCs in addition to investigating use cases for a digital yen. The results of a two-year technological study conducted by the Financial institution of Japan, the country’s main financial institution, can be used to support the panel’s analysis.
Officials from the Bank of Japan told local reporters that the country’s central bank did not currently have any firm plans to begin issuing digital currencies. The officers predict that it will take some time before the plan’s approved features are worked out and the framework encircling a digital yen is complete.
However, the Ministry of Finance will consider the recommendations made by the expert group before deciding whether or not to implement a digital yen. The panel will be introduced at the same time as the Bank of Japan (BoJ) launches a pilot initiative to examine how its CBDC is being used.
The pilot program’s objectives are to work with private businesses to develop a CBDC ecosystem and to assess the technological viability of a CBDC.The pilot program has two goals, according to BoJ Govt Director Shinichi Uchida: “first, to assess the technological feasibility… in order to design a CBDC ecosystem in the potential scenario of social implementation, and second, to make the most of the skills and insights of private businesses through technology and operation.