On July 20, the Bank of Japan (BoJ) started a discussion for a pilot program with 60 companies for development of the digital yen.
The discussions will cover various themes, including the business and technological features of retail settlements using a central bank digital currency (CBDC), said the Central Bank in a statement.
Many big Japanese companies were included in the list of 60 firms invited to join the discussions, indicating that Japan is steadily moving towards launching a digital yen.
“Our hope is that the pilot program will lead to improved designs through discussion with private businesses,” Shinichi Uchida said in opening remarks at the central bank’s meeting with private-sector executives.
“Under the pilot program, we plan to develop a system for experiments, where a central system, intermediary network systems, intermediary systems, and endpoint devices would be configured in an integrated manner,” said executive director of the Bank of Japan Uchida Shinichi during his speech.
The group for discussion included some well-known entities such as electronics giant Sony, convenience store operator Lawson, the financial arm of auto giant Toyota, and East Japan Railway.
As the world is quickly moving towards digital payment systems, central banks around the globe have been exploring the idea of introducing digital versions of their national currencies.
The goal is to take control over currency issuance and payment systems, protect financial stability, and offer secure retail payment options to the public.
Approximately 24 central banks from both emerging and advanced economies are expected to have digital currencies in circulation by the end of the decade, as per the survey of the Bank of International Settlements (BIS).
The successful implementation of the digital yen would lead to better financial growth for Japan’s economy in future.
The discussion held by BoJ would help Government and Parliament decide the fate of the Digital yen.
Also Read: Japanese Ministry To Form Panel To Watch Over Digital Yen
