Japan’s central bank has begun tried a new digital currency in an effort to experiment with how it could be used, Bank of Japan announced months. The announcement comes after the Chinese government revealed that it is doing something very similar to a digital yuan in early March.
“The Bank of Japan has made preparations to begin Central Bank (CBDC) digital currency experiments in early fiscal 2021 to test the technical feasibility of the basic functions and features required for the CBDC,” the Bank of Japan said in a statement. published online. “As the necessary preparations are now complete, Phase 1 of the Proof of Concept (PoC) begins today.”
The announcement confirms rumors that have been circulating since the end of 2020 about Japan’s potential to create a digital yen. But there is no guarantee that Japan will ever make digital currency available to the public. Everything is very experimental now, according to the Bank of Japan.
“In Phase 1 PoC, the Bank intends to develop a test environment for the CBDC system and conduct experiments on the core functions underlying the CBDC as a payment instrument such as issuance, distribution and redemption,” the Bank of Japan continued. “This phase will run until March 2022, for a period of one year.”
As the Sign up points out that virtually every major central bank in the world is experiment or rumor that they are experimenting with digital currencies to make sure they are ready whenever the time comes to issue one. And as cryptocurrencies like bitcoin and ether become more common through services like PayPal, that time could be sooner rather than later.
G / O Media may receive a commission
In the United States, Treasury Secretary Janet Yellen said she supports funding research in a digital dollar, although she pointed to the kind of conservative thinking you would expect from a top government official. At least the kind of thinking in a normal way (read: post-Trump) government.
“There’s a lot to consider here, but it’s definitely worth a look,” Yellen said back February.