CBDC Not Widely Recognised in Japan Despite Ongoing Trials, R&D Efforts: Details

As per Bank of Japan governor – money has a nature of undergoing changes which is what is happening now with the onset of digital currencies like CBDCs.

CBDC Not Widely Recognised in Japan Despite Ongoing Trials, R&D Efforts: Details

Photo Credit: Unsplash/ Roméo A

CBDCs are blockchain-based digital representations of fiat currencies issued by central banks

  • Japan’s CBDC is called the digital yen
  • It has been under development for at least two years
  • Japan’s CBDC could see a wide rollout by 2026

The CBDC concept in Japan, has not quite spread out to the residents there, new findings have shown. Less than 20 percent of Japan's population is familiar with the term CBDC, claimed Kazuo Ueda, the governor of the Bank of Japan (BoJ), during a recent speech. He also noted that another 20 percent Japanese residents, while having heard of something called a CBDC, did not know or understand its concept at all. Identifying this awareness-related issue, Ueda spoke at length about what CBDCs are and why they make for cost-effective alternatives for presently used cash notes.

In his speech, the BoJ governor backed the emergence of a national CBDC saying that it could facilitate faster payments of bigger denominations among noting other potential benefits. He also lauded that CBDCs need only digital wallet storages, as opposed to cash notes that require a physical storage locations.

“Retail CBDC has been explored in many countries, including Japan, on the premise that this would align with cash -- in other words, banknotes and coins -- in terms of their roles and functions as a means of payment. Cash is a direct liability of the central bank. This is in sharp contrast to existing digital payment methods,” Ueda said.

As per the BoJ governor – money has a nature of undergoing changes which is what is happening now with the onset of digital currencies like the CBDCs.

Built on blockchain networks and issued by the central banks, CBDCs are the virtual symbol of fiat currencies. The R&D and trials around CBDCs have been heated up around several parts of the world, especially in Asia.

Japan, last July, kicked off a series of discussions with 60 companies on a pilot programme for developing a digital yen. Several large Japanese banks as well as tech majors like Sony and Toyota's Lawson were also made part of this project.

The Japanese CBDC entered its trial phase around April last year through where the BoJ wished to analyse the technical feasibility and use-cases of the digital yen. Japan could see a wider roll out of its digital JPY by 2026.

India, China, and Hong Kong are also rapidly working towards developing and deploying their respective CBDCs.

Is the Samsung Galaxy Z Flip 5 the best foldable phone you can buy in India right now? We discuss the company's new clamshell-style foldable handset on the latest episode of 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.

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Cryptocurrency, Japan, CBDC
Radhika Parashar
Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More
Hades Is Coming to Netflix Games on iOS on March 19, Pre-Registrations Open Now
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News


Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »