The central Bank of Japan revealed it would launch a CBDC feasibility study in April 2021. In its report, the bank stated, “The bank considers it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner.” Japan has become the latest major economy to explore the feasibility of a central bank digital currency. The central bank is reportedly researching a digital yen as it aims to keep pace with neighboring country China.
“China has prompted moves toward digital currency around the world.”
According to the Japan Times, Japan has been closely monitoring China’s rapid progress in the CBDC efforts. Former BoJ executive Hiromi Yamaoka told the Japanese news outlet, “China has prompted moves toward digital currency across countries. It has done so at surprising speed, as central banks tend to take a cautious stance on new systems.” As reported earlier, a local digital currency forum is also working on “some form of digital currency” for Japan’s private sector to complement the central bank’s efforts.
Central banks across countries continue to explore CBDC.
As reported earlier, Sweden’s government will start exploring the feasibility of having a digital currency, marking another step into the unknown for the world’s most cashless society. The People’s Bank of China (PBoC) has been working on the national digital currency for the last five to six years and is now very close to issuing it to the general public. Some smaller countries have already issued their national digital currency. Cayman island launched a national digital currency this year. Central banks of Canada, Japan, the Philippines, and many others are actively exploring CBDCs. Central banks worldwide are now actively exploring central bank digital currencies and making plans for real-world testing.
