Japan has launched its digital yen project after its second successful Proof of Concept trial.
The Bank of Japan (BOJ) has announced the results of the second phase of the CBDC proof-of-concept (PoC) experiment. The CBDC confirmed that its pilot project started in April.
Japan Launches Digital Yen After Successful Trials
According to the Bank of Japan (BOJ) report, the phase two experiment tested technology to impose caps on CBDC assets, defined as “measures to stabilize the financial system” in the event of a sudden switch from bank accounts to CBDC. This included scenarios where a single user had multiple accounts with multiple agents. Initiation of payments and scheduling of user convenience were also examined.
In the background, experiments were carried out on the database language and notebook design. Additionally, a soft-value token model was tested. An orchestration system was developed so that more than one operation can be performed faster with the same account.
The experiment assumed 100,000 users with five agents and focused on 500 to 3,000 compute loads per second with increasing scalability discussion. Confidentiality was thought through, but not discussed in detail. Offline payments were addressed in the context of fraud prevention and privacy protection.
The PoCs were considered successful as the targeted results were achieved and the report confirmed BOJ’s move to the planned CBDC pilot project. The pilot project will examine the “end-to-end process flow” and other connections to external systems.
The report also stated:
“Whether or not a CBDC will be issued has to be decided through discussions among the Japanese public.”
