Japan CBC Pilot Program Starts On April 2023

By Kevin • February 18, 2023 12:08 pm • Comments

There seems to be more and more CBDC pilot programs popping up across the world as the crypto industry continues to disrupt the existing financial system.

The predictions from experts that the majority of central banks will get involved in CBDCs within the next decade are shaping up to be accurate so far.

Most recently, it has been announced that a CBDC pilot program will start in Japan on April of this year despite the recent bear markets.

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This new CBDC pilot program will test the creation and use of a digital yen and it is a project that has been worked on by the Bank of Japan for a couple years.

The program will now finally test the practicality of the use of a CBDC on a mass scale within the region and may serve as an influence for many other countries in Asia to follow the same steps.

Watcher.guru reports:

The bank’s latest move of testing the CBDC could give the bank a better idea about its fully-fledged launch. Elaborating on the same, BOJ Executive Director Shinichi Uchida further said,

“If a CBDC were to be issued in the future, exploring its framework in such a phased manner and engaging in highly transparent communication with the private sector are necessary steps to take for adoption in society.”

Additionally, through this program, Uchida hopes to bring about “improved designs through discussion with private businesses.”

According to Uchida, the BOJ will replicate interactions with private financial institutions as part of the pilot program. But the bank has no plans to carry out transactions between stores and customers.

The fact that Japan is deciding to do this CBDC pilot program in the April of this year is actually quite early compared to many other central banks in the world.

It may indicate that there are many advantages for a country if it is one of the early adopters and being late to the party may indicate that a lot of financial benefits will be missed out on.

So far, there are only a few regions in the world that are on the same level of progress and many of them are considered crypto hubs within the world.

As a result, they have gotten a lot of foreign investment capital as a result of their pro-crypto stance which will also attract a lot of crypto firms.

Despite the alarming growth of attention when it comes to CBDCs, the US is still wary about the applications of it and will face many obstacles to getting such an initiative approved.

CoinTelegraph concludes:

The news about the CBDC pilot was highly anticipated, as local media reported the BoJ’s intention back in November 2022. According to the reports, at least three Japanese megabanks and regional banks will collaborate with the BoJ.

Meanwhile, Japanese authorities also consider lifting the ban on foreign stablecoins, which came into law in 2022.

According to the Financial Services Agency of Japan, the amendments should be passed by June 2023. While they won’t let any foreign stablecoin into the market automatically, the green light will be shown to those coins which successfully pass individual checks.

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