• Japan is set to launch a pilot program in April to test its version of a central bank digital currency (CBDC) called the digital yen.
• The aim of the pilot program is twofold: first, to test the technical feasibility and second, to utilize the skills and insights of private businesses.
• The move comes after more than two years of proof-of-concept experiments by the BoJ around the digital yen.
Japan To Launch Pilot Program For Digital Yen In April
The Bank of Japan (BoJ) announced on Friday that it will launch a pilot program in April to test its version of a central bank digital currency (CBDC), known as the digital yen. Executive Director Shinichi Uchida said that this move comes following two years of proof-of-concept experiments by the BoJ around the digital yen.
Pilot Program Aim
Uchida stated that the aim of this pilot program is twofold: first, to test out its technical feasibility and secondly, to utilize private business’ technology and operational skills for designing a CBDC ecosystem in case social implementation occurs.
FTX Japan Customers
According to Liquid by FTX’s blog post, FTX customers may be able to withdraw their funds as early as mid-February which would make them some of the first customers of this collapsed crypto exchange who can get their money back. CoinDesk executive director Emily Parker discussed how Japanese regulatory framework made it possible for such withdrawals from FTX Japan customers.
The launch also comes at a time when there is expected leadership transition at BoJ with Kazuo Ueda taking over from Haruhiko Kuroda when his second five year term ends in April.
China’s Digital Yuan
The development also follows China’s progress on its own CBDC, or digital yuan which has already extended into more than 105 countries representing over 95% of global GDP.