Bank of Japan has hinted on the trial of digital currency in early 2021, Although denying any facts regarding issuance of a central bank regulated digital currency.
In a report Bank of Japan has claimed to have two proof-of-concept phases in the work which can be seen turning into pilots as soon as in early 2021.
BOJ said in a press release on Friday that “From the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, the bank considers it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner,”
Although they have dodged any claims for issuing a central bank’s digital currency by saying that it has no plans to issue a new CBDC.
Raising Concerns Over Chinas Growing Advances In Digitalization
A Central bank digital currency has the same concept as a cryptocurrency but it
is centralized and regulated as the central bank is involved.
Japan’s rival China has already developed onto its trialing phase for its project called the DCEP or the Digital Currency Electronic Payment.
This comes as an intimidating situation as Japan’s vice finance minister raises his concerns on China getting to set the standards globally in an official statement.
Where Does Japan Stand On Digitalization As Of Now?
Cash payments are far from being obsolete and still, there’s a long way for cashless payments to entirely substitute and overcome actual cash.
Bank of Japan claims to issue a CBDC if cash in circulation drops sharply.
The newly-appointed prime minister has made digitalization a top priority after they failed to get stimulus payments out to residents during the pandemic.
BOJ seems to have no current plans for issuing a digital currency but has also given a raincheck to the matter as an issue.