Home
Cryptocurrency
Cryptocurrency News
Bank of Japan Plans to Rope In Other Major Lenders in Digital Yen CBDC Trials: Report

Bank of Japan Plans to Rope-In Other Major Lenders in Digital Yen CBDC Trials: Report

Japan could see a wider roll out of its digital yen by 2026. Before that, the BoJ aims to check if the CBDC works efficiently under disaster-like situations or no net connectivity.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 24 November 2022 13:13 IST

Bank of Japan Plans to Rope-In Other Major Lenders in Digital Yen CBDC Trials: Report

Photo Credit: Unsplash/ Roméo A

This trial with the Japanese mega banks could go for as long as two years

Click Here to Add Gadgets360 As A Trusted Source

Highlights

Japan is among other nations working on their respective CBDCs
Japan’s prime minister, Fumio Kashida is pro-blockchain
Japan aims to align its CBDC with existing financial institutions

Japan is accelerating its efforts to explore the potential of the overall blockchain sector. Moving forward on its CBDC plans, the Bank of Japan (BoJ) is looking to rope-in a bunch of other mega banks to test the digital yen. The three Japanese megabanks, while unnamed officially, are reportedly supposed to be Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc., and Mizuho Financial Group Inc. Starting next year, these banks will help the BoJ verify if there are any issues with the deposits and withdrawals of the CBDC.

Japan could see a wider roll out of its digital yen by 2026. Prior to that, the BoJ aims to check if the CBDC works efficiently under disaster-lie situation or no Internet connectivity, said a Nikkei report. This trial with the Japanese mega banks could go on for as long as two years.

A CBDC or a central bank digital currency is built on blockchain, works like cryptocurrencies, but are issued and regulated by the central bank.

FTX Crypto Assets Worth $740 Million Recovered So Far, Court Filings Show

CBDCs are being designed by several nations around the world, with the aim of complementing, rather than replacing, current forms of money and provide an additional payment avenue to users.

As part of its research on CBDC, Japan's main aim is to ensure that it aligns properly with the country's existing financial and economic infrastructure. As per Kazushige Kamiyama, the head of BOJ's payments department has revealed that Japan's CBDC will soon enter a small-scale pilot test.

Japan's prime minister, Fumio Kashida has been on a hunt to find ‘new capitalism' solutions to boost the country's economy. The lawmakers of the country are not shying away from trying out crypto services to eradicate financial inequality in the country.

El Salvador Inches Closer Towards Issuing Bitcoin Volcano Bonds

Back in May, Kishida had said that Japan would develop and foster a promotional environment for Web3, blockchain, NFTs, and the metaverse.

Meanwhile, India, Russia, Jamaica, and China are working on their respective CBDCs.

Apple unveiled eight new products at its September 'Far Out' event. Which ones will float — and which will sink? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.