Japan has officially announced that it will soon start the test of issuing digital yen in April. Japan decided to take this initiative after seeing major central banks of the world launching digital currencies. Also, Japan is trying to catch up with China which has already issued its digital currency by the name digital yuan which is widely accepted by the Chinese people and is working in full swing.
Bank of Japan Executive Director Shinichi Uchida said that the aim of this program is to test whether launching a digital currency will be technically feasible. Also, another motive of this program is to utilize the skills of organizations and talented people to develop a friendly environment for CBDC (Central Bank Digital Currency).
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As of now, the digital yen is completely under test and there will be no transactions said Kazushige Kamiyam, a prominent figure of the Bank of Japan (BOJ). He also added that in the near future, they may experiment with retail payments as well. By doing so, people and businesses will also understand the working of the digital yen.
In this project, The Bank of Japan (BOJ) will work with 3 megabanks and regional banks of the country and the test will be carried out for two years which will provide enough time and data for the Japanese Central Bank to decide further on this. If the test goes successful, very soon Japan will also launch its digital currency.