Japan Plans to Launch Experimental Digital Yen CBDC in 2023

Vignesh Karunanidhi
Bank of Japan is Planning to Release Digital Yen Experiment in 2023
Source: CryptosRus

The cryptocurrency realm has been going through a string of events lately. Governments were forced to review laws governing the industry because a significant amount of investors had embraced the market. Other governing bodies were still working to implement the strict laws that some had created, and that stifled innovation. The current cryptocurrency regulations in Japan, on the other hand, are being relaxed in an effort to be more accommodating to the industry.

The Japanese parliament approved a bill earlier in June designating stablecoins as a digital currency. Japan was one of the first major economies to enact a legal framework for stablecoins, so this attracted attention to it.

In one of the recent reports by Nikkei, it came to attention that the Bank of Japan is planning to launch a digital yen CBDC pilot in early 2023.

Bank of Japan collaborated with three megabanks for the pilot

As per the details in the report, the experiments will begin in the spring of 2023. The Bank of Japan will be working closely with banks and other organizations. This is to identify any issues with deposits and withdrawals. The central bank will also analyze whether it can function without any hindrances during any natural calamity or when there is no internet facility.

The central bank’s plan is to experiment with the digital pilot for two years and then discuss and decide whether to move forward with the issuance in 2026. However, the banks that are participating in the experiment have not yet been revealed.