Digital Yen in Its Final Phase: What Does this Mean for Crypto?
Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva stated: “Crypto assets and stablecoins are no match for well-designed central bank digital currencies (CBDCs). If CBDCs are designed prudently, they can potentially offer more resilience, more safety, greater availability, and lower costs than private forms of digital money.”
Having understood the preceding statement made by Georgieva, the Bank of Japan (BOJ) has decided to launch a pilot program to test the use of a digital yen in the backdrop of nearly 100 countries testing the adoption of CBDC.
In Proof of Concept (PoC) Phase 1, which started in April 2021, the Bank of Japan built an experimental environment centered around a CBDC ledger, which is the foundation of a CBDC system. In PoC Phase 2, beginning in April 2022, the Bank implemented more complex, additional functions of CBDC to the core functions explored in Phase 1 and investigated their technical feasibility and processing performance.
Stating more about the pilot program which is in the latter phase of development, BOJ Executive Director Shinichi Uchida in opening remarks at the central bank’s meeting with private-sec…
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