Although the Bank of Japan is unsure on issuing a CBDC, they continue experimenting with developing a potential digital yen.
A Central Bank Digital Currency (CBDC) issuance pilot is taking shape in Japan, with the Japanese central bank collaborating with megabanks and regional banks to make it happen, a Nikkei report quoted on Nov. 23.
The Japanese pilot aims to provide demo experiments for the issuance of life-changing digital currencies. They hope to stop using printed money and instead adopt a safe and reliable new currency that will change the future of Japan.
The Bank of Japan plans to work with major Japanese banks and other organizations to identify and solve any issues related to customer deposits and withdrawals. They will be testing the offline functionality of Japan’s possible CBDC, which will focus on payments without the internet.
Japan’s central bank plans to finish its CBDC experiment in two years and make a final decision by 2026 on whether or not to issue a digital currency.
Countries across the globe are getting involved in the initiative to research central bank-issued digital currency (CBDC). Some countries, like China, have been investing heavily in this emerging trend.
The Reserve Bank of India is preparing to launch the retail version of the digital rupee in December. On November 22, Cointelegraph reported that they are collaborating with major banks including SBI in order to make it a success. On November 16th, the New York Federal Reserve Bank announced its pilot for CBDCs in partnership with banking giants like BNY Mellon and HSBC.
While most countries are rushing to launch their own version of a CBDC, Denmark is dropping out of the digital currency race. And they’re citing some pretty compelling reasons why. Their central bank cites difficulties for the private sector and questionable value when they made their announcement earlier this year. Some have considered it due to concerns over the regulatory side of things, but no central bank has ruled out completely launching a CBDC.
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