Bank of Japan Chairman Shinichi Uchida said Apex Bank will launch a central bank digital currency (CBDC) pilot program to test the use of the digital yen from April.
The Bank of Japan has launched the proof-of-concept (PoC) phase of its CBDC experiment in April 2021. A PoC was designed to investigate the technical feasibility and processing performance of the CBDC system.
From the perspective of improving the results of the PoC phase, Tomokazu Uchida announced The Bank of Japan announced on February 17 that it will start a pilot program from April 2023.
The pilot program has two purposes. The first is to test technical feasibility not fully covered by the PoC, and the second is to involve the private sector in CBDC experiments.
Uchida said the BOJ will conduct mock transactions with private financial institutions in a test environment.
“… Engaging in transparent communication with the private sector is a necessary step toward being adopted by society,” Uchida added.
Uchida explained that the pilot program will help the BOJ prepare if the government decides to issue a digital yen.
