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.
The Bank of Japan has reportedly begun planning a central bank digital currency (CBDC) experiment with the country’s leading financial institutions which is set to begin in 2023.
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.
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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.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
