The Bank of Japan (BoJ) has announced that it has started the digital central bank money experiment. The first phase of the experiment will last until March 1, 2022.
According to the statement made by BoJ, the basic preparations required for CBDC studies have been completed. In the first stage of the CBDC test, technical requirements such as production, distribution and usage will be tested.
The experiment can be in three stages
In the Reuters news, it is stated that a more detailed study will be made on the function of the CBDC in the second stage experiment, which is planned to be carried out after March 1, 2022. If deemed necessary, it is stated that a third stage experiment can be conducted after the second stage and the participation of the enterprise and users in the pilot program can be achieved.
No CBDC issuance plans
BoJ Chairman Haruhiko Kuroda said that on March 15th there are no plans to launch CBDC, but we need to be prepared for this. BoJ executive director Shinichi Uchida emphasized that although the bank does not have a CBDC plan yet, it is necessary to experiment on this issue.
Central bank’s expectations from CBDC
In the bank’s announcement dated October 9, 2020; It is stated that CBDC is expected to be used with cash, support special payment methods and be suitable for the digital society. At the same time, the bank says that CBDC will be of two different types. The first will be to be used by large funds and companies, and the other will be for the use of citizens and average companies.