The Bank of Japan (BoJ) will launch a pilot programme in April 2023 to evaluate its version of digital currency (CBDC).
Shinichi Uchida, executive director of the Bank of Japan, said during the fifth meeting of the Bank of Japan's Liaison and Coordination Committee that they are ready for the introduction of the digital yen. He also explained that the trial run is being conducted for two reasons: to assess the practicality and use of technological and operational capabilities of private firms to create the CBDC ecosystem and its potential social applications.
This decision was taken after two years of experimentation with the digital yen. Apparently, the BoJ is keeping an eye on the Chinese digital yuan, which continues to lead the global CBDC race.
The Bank of Japan expects changes to its governing body. It seems likely that Kazuo Ueda will replace Haruhiko Kuroda, who is coming to the end of his second five-year term.
In late 2022, Nikkei, one of the largest media corporations, reported that the Bank of Japan, together with three major banks and numerous local financial institutions, will begin trials of the digital yen, which will begin in spring 2023.
BoJ officials said that no retail transactions are expected to take place as part of the pilot yet; however, they announced a CBDC forum where private companies related to retail payments or technology will be able to participate in these discussions.
