Yen-credible News: Japan to Pilot Digital Currency in April
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Japan plans to launch a pilot program for its central bank digital currency (CBDC) in April 2023. The pilot program will focus on the technical feasibility of the "digital yen" and will not involve actual retail transactions. Japanese authorities are also considering lifting the ban on foreign stablecoins. Japan, a country that currently prohibits foreign stablecoins, has announced plans to commence a pilot program for its central bank digital currency (CBDC) in April 2023. This pilot will include participation from private businesses and will test a model of the CBDC ecosystem. Pilot Program for Digital Yen CBDC Ecosystem On February 17th, the executive director of the Bank of Japan (BoJ), Shinichi Uchida, announced the launch of the “digital yen” pilot program in his opening speech at a CBDC committee meeting. The BoJ had conducted proof-of-concept testing in 2021, and upon completion, decided to proceed with the pilot program in April 2023. The pilot program will focus on the technical feasibility of the “digital yen” and model a CBDC ecosystem with the involvement of private companies. During the pilot, only simulated transactions will take place, and no actual retail transactions will be made. To ensure a seamless and successful transition, the BoJ acknowledges the importance of active collaboration with industry players, and thus feedback and communication will be established to ensure mutual benefits. Opening Remarks by Executive Director UCHIDA at the Fifth Meeting of the Liaison and Coordination Committee on Central Bank Digital Currency (Taking the Next Step) (via webcast) https://t.co/bmSAhbjoA9— Bank of Japan (@Bank_of_Japan_e) February 17, 2023 Uchida's speech highlighted the importance of consulting with the private sector regarding the design of the future CBDC and key components of the system such as alternative data models and frameworks for offline payments. To facilitate this communication, they will be creating a CBDC forum. The CBDC announcement did not come as a surprise to many, as the local media had been discussing the idea for some time. Collaboration is Key The announcement of the CBDC pilot program was highly anticipated, as local media had previously reported the BoJ's intentions in November 2022. At least three Japanese megabanks and regional banks will collaborate with the BoJ in the program, according to the reports. Furthermore, Japanese authorities are considering lifting the ban on foreign stablecoins, which came into law in 2022. The Financial Services Agency of Japan should pass the amendments by June 2023…Continue reading on DailyCoin.
