The Bank of Japan will launch digital yen testing in early 2023.
The bank will work with several unnamed financial institutions for a CBDC test. The tests will cover deposits and withdrawals as well as internet testing.
CBDC Test from the Bank of Japan
According to the news of the Japanese newspaper Nikkei, the central bank plans to start the CBDC test at the beginning of 2023 in order not to fall behind rival countries.
The country’s central bank will make its decision in 2026 on whether to officially adopt the digital yen.
The world’s leading economies continue their research to develop some form of government-backed digital currency. Currently, China and Nigeria are among the leading countries at this stage. Jon Cunliffe, vice-president of the Bank of England, said in a statement yesterday that these tests may fail, but it is important for central banks to make sure that a widely used digital payments asset can be used. Cunliffe warned that otherwise some trading firms could dominate and control important payment services.
