Digital Yen Pilot Program to Launch in April: BoJ
• Japan is launching a pilot program in April to test the use of its version of a central bank digital currency (CBDC) known as the digital yen.
• The pilot program aims to test the technical feasibility and utilize private businesses for designing a CBDC ecosystem.
• This comes after more than two years of proof-of-concept experiments by the BoJ, even as China’s digital yuan continues to lead the CBDC race globally.
Japan Will Launch Pilot for Issuing Digital Yen in April
The Bank of Japan (BoJ) announced on Friday that it plans to launch a pilot program in April to test the use of its version of a central bank digital currency (CBDC), known as the digital yen. The move comes after more than two years of proof-of-concept experiments by the BoJ around the digital yen, even as China’s digital yuan continues to lead the CBDC race globally.
Objectives Of The Pilot Program
According to BoJ Executive Director Shinichi Uchida, „The aim of the pilot program is twofold: first, to test the technical feasibility … and second, to utilize the skills and insights of private businesses in terms of technology and operation for designing a CBDC ecosystem in the possible event of social implementation“.
Leadership Transition At The BoJ
The move also comes at a time when the BoJ is set for leadership transition, with Kazuo Ueda expected to take over from Haruhiko Kuroda when his second five-year term ends in April.
FTX Japan Customers May Get Their Money Back
FTX Japan customers may be able to withdraw their funds as soon as mid-February according to Liquid by FTX blog post which would make them some of the first customers of collapsed crypto exchange get their money back. CoinDesk executive director Emily Parker discusses how Japanese regulatory framework made it possible.
In conclusion, Japan’s decision to launch a pilot program for testing its version of central bank issued digital currency will have far reaching implications on global financial markets economy given that almost 95% countries are already partaking in this race via their own versions. In addition, FTX Japan customers may be able to withdraw their funds very soon which marks an important milestone towards restoring confidence among crypto investors across world.