Beginning in 2020, the Bank of Japan will conduct Pilot Tests of the Digital Yen.



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The Bank of Japan (BoJ) plans to launch pilot testing for Digital Yen in 2019 despite uncertainty on whether to launch the central bank digital currency (CBDC). According to reports, the Bank of Japan has conducted a CBDC issuance trial in conjunction with three megabanks and regional banks.

Before diving into this piece, you may want to catch up on some relevant stories, like how the SBF told its staff that there's still hope for FTX or how Genesis hired a restructuring specialist to keep it out of bankruptcy.

Beginning in the spring of 2023, the pilot program aims to issue digital yen, Japan's national digital currency. Experiments to determine whether to issue CBDC are planned to take place over the next two years, with a final decision made by 2026.

It's worth noting that the Bank of Japan ran an internal experiment last year to check out some of the fundamental features essential to the issue and circulation of digital money. The forthcoming show is the last trial, and it will be focused on real-world use.

During the trial period, the Bank of Japan will work with other entities, including the country's largest private banks, to investigate and address any problems that may arise with account deposits and withdrawals.

As part of these experiments, we will also examine the offline capabilities of Digital Yen, namely its ability to process payments that don't necessitate an internet connection. The New York Federal Reserve issued a report on the first phase of wCBDC study, "Project Cedar," whereas Japan has yet to start its own CBDC investigation.

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