The Bank of Japan (BoJ) has announced that it can set limits on digital central bank currencies. BoJ stated that it is aimed to prevent unwanted money outflows with the limit planned to be set.
According to the news shared by Reuters news agency, Kazushige Kamiyama, a senior BoJ official, said that they are considering limiting the Japan digital central bank money project. Stating that they are planning to prevent unwanted activities between bank accounts with this limit, Kamiyama underlined that the limit in question is not certain and said:
“This is just one option. We cannot say that we will definitely set limits, because our decision may change depending on the outcome of the CBDC experiments.
Bank of Japan CBDC to Continue Its Work
Japan has recently announced that it will begin CBDC trials in 2021 with the acceleration of digital central bank money efforts globally. Japanese government spokesman Katsunobu Kato said digital central bank money feasibility studies will begin in April 2021. BoJ official Kazushige Kamiyama said he hopes the CBDC trials, which will begin in 2021, will move to the second phase in March 2022. It was also shared that there is no timeline yet for Japan’s national digital central bank money project.
The Bank of Japan published the CBDC report on October 9, 2020. According to the report, the rapid development of technology and the rise of digitalization both at home and abroad have led to an increase in demand for the digital central bank currency. Emphasizing that there is already a CBDC plan, BoJ underlines the need for extensive research on the subject. The bank summarizes the functions and roles expected from CBDC in the report as follows:
- Being a new payment tool with cash
- Supports special payment methods
- Providing benefit in developing payment systems suitable for the digital society