BOJ begins 1st phase of experiment on central bank digital currency
A collage showing Bank of Japan Governor Haruhiko Kuroda, various cashless payment options available at a convenience store in Tokyo and a smartphone showing an application for Cambodia s central bank digital currency Bakong. (Photo courtesy of Soramitsu Co.) (Kyodo)
The Bank of Japan on Monday began a year-long experiment to check the basic functions of a central bank digital currency as its Chinese, European and U.S. peers are ramping up their own efforts toward introducing the new payment form.
The BOJ is experimenting with the issuance, distribution and redemption of a digital currency, among other functions, in the first phase through March 2022 of its three-stage experiment. The Japanese central bank, however, takes the position that it currently has no plans to issue one.
FOCUS: Japan prepares for digital currency, in line with China and others
Japan is gearing up preparation for the issuance of digital currency in both public and private sectors following swift moves by China and some other countries to do the same.
Virtual money issued by central banks around the world is called central bank digital currency or CBDC, and is used for cashless payments via smartphones or electronic cards just as cash, while some private organizations, including one established by Facebook Inc., also plan to introduce their own digital currencies.
Different from credit cards and cashless payment services, digital currencies are expected to provide retailers commission-free payment systems while end-users are able to not only settle payments at stores but also quickly send money to others via their smartphone apps.
Japan prepares for digital currency, in line with China and others mainichi.jp - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mainichi.jp Daily Mail and Mail on Sunday newspapers.