Japan Credit Bureau to test credit card-based CBDC settlement solutions

admin October 25, 2022

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Japan Credit Bureau (JCB) Said On October 24th, we plan to launch a JCBDC pilot project to test a central bank digital currency (CBDC) credit card-based payment solution using existing credit card infrastructure.

Since 1981, JCB has been Japan’s only international credit card payment brand, 146.1 million The number of cardholders as of March 2022.

With this partnership, JBC will join forces with IDEMIA and Softspace to leverage the former’s ID recognition service and the latter’s payment solution service to realize the project’s vision of introducing a retail CBDC in the country.

Additionally, the project aims to solve challenges such as integrating with existing payment infrastructure and creating a CBDC that is easy to use for those who do not use smartphones, such as the elderly and children.

The project also aims to subvert the Japanese lukewarm interest in the idea of CBDC.

In August 2021, the Bank of Japan (BoJ) announced that it would abandon its planned hosting of CBDC services after completing two phases of CBDC testing since April 2021. This decision was made due to lack of public interest and prevalence of internet banking. Services, credit card usage, cash issuance, and e-money payment gateways.

The Bank of Japan has reportedly said there is no need to introduce a CBDC in the near future.

Making of JCBC

As part of the project, three companies will create and develop a three-functional solution.

The first is to test the CBDC payment solution by integrating existing JCB Contactless and Softspace contactless payment terminals into the payment infrastructure of the store, allowing users to pay via CBDC using their smartphones. is to

The second is to test the issuance and delivery of plastic cards for CBDC. The third is to build a simulated CBDC processing environment.

The JCBDC project aims to complete the payment solution by the end of 2022 and conduct field trials in physical stores by the end of March 2023 to identify and resolve pilot issues.