The BoJ will begin working with commercial banks and other organizations in the spring of 2023 to identify any issues with deposits and withdrawals. And, also verify whether a central bank digital currency (CBDC) can function during natural catastrophes and in places without an internet connection.
Japan Joins CBDC Race
According to the report, Japan’s central bank intends to continue its CBDC experiment for around two years before deciding whether to launch a digital currency by 2026.
The announcement comes as governments throughout the world ramp up their efforts to conduct research and promote CBDC, with China taking the lead in this regard.
As reported earlier on CoinGape, the New York Fed revealed that it would be undertaking a twelve-week CBDC pilot with five other banking heavyweights. Even the central bank of India recently announced their launch date for the pilot launch of the Digital Rupee.
An official from the BoJ stated last year that the goal of the central bank is to make sure that a CBDC promotes competition among private payment providers and is open to all members of society.
Not All Are Keen On CBDCs
Some nations, like Denmark, have pulled out of the race to introduce a CBDC while the remainder of the world has rushed to do so. The central banks gave a variety of reasons for abandoning their CBDCs, including potential challenges for the private sector and other disadvantages.
This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.
#Bitcoin #Crypto #Cryptocurrency