CBDC: Japan to Test Digital Yen in 2023
The Bank of Japan (BoJ) has announced that it is working with the country's three largest banks to launch a trial version of a digital yen.
It is believed that if all goes according to plan, the central bank will launch the CBDC in 2026. As part of the trial project, which will last two years, the bank will collaborate with major private financial institutions to identify and solve problems customers may encounter with deposits and withdrawals in traditional bank accounts.
The pilot project will include testing the offline functionality of the country’s CBDC pilot and will target payments without the use of the internet.
Japan’s decision for CBDC trials follows many other Asian countries. China was the first country to go this route and allow its citizens to spend their digital yuan.
India has also announced that it is ready to launch a CBDC called the digital rupee, and the Reserve Bank of Australia recently announced that it is launching a central bank digital currency research project that aims to be completed by mid-2023.