BOJ and Japanese Commercial Banks to Test Digital Currency Payments

Tokyo, Nov. 23 (Jiji Press) — The Bank of Japan and Japanese commercial banks will jointly test central bank digital currency payments, starting in the spring of next year, sources familiar with the matter said on Wednesday.

The test will involve Japan’s central bank and three major commercial banks as well as regional banks, the sources said.

In April last year, the BOJ began testing the basic functions of CBDCs. It moved to stage two of the CBDC test in April this year, focusing on more complex functions, including linkages to outside systems.

Nearly 90% of central banks around the world are looking into CBDCs, according to the Bank for International Settlements. In China, a CBDC test involving consumers and stores is already underway.

The BOJ said it has no plans to issue a CBDC at this time.

[Copyright The Jiji Press, Ltd.]