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BoJ, Megabanks Team up For Digital Yen Pilot Project

 

The Bank of Japan (BoJ) has teamed up with private financial institutions to conduct a pilot experiment for a digital yen, sources say.

The move, which had been widely expected, follows two years of experiments the BoJ has been coordinating to decide whether to issue a central bank digital currency (CBDC).

The Nikkei newspaper reported that the BoJ will start pilot experiments for launching a digital yen with Japan’s three megabanks and regional banks next spring.

 

Also on AF: Asia Stocks Edge Ahead But China’s Covid Woes Weigh

 

A spokesperson for the BoJ was not immediately available to comment on Wednesday, a public holiday in Japan.

The move will come after the BoJ wraps up a second phase of its CBDC experiment that started in April, and which will last about a year.

While the BoJ has not made any decision yet on whether to issue its own digital currency, Governor Haruhiko Kuroda said in May that providing a retail CBDC could be an option to secure a seamless and safe infrastructure in Japan.

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

Bank of Japan to Move to Second Phase of Digital Yen Project

Japan lawmaker says digital yen has potential to reshape financial industry

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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