Bank of Japan Eyes Offering Safe Digital Payment System Via CBDC

• The comments were made by Governor Haruhiko Kuroda on Tuesday.
• The BOJ will provide further two years of testing after the completion of the pilot program.

The Bank of Japan has said that it must be prepared to issue a CBDC in order to provide the public with a secure digital payment system. The comments made by Governor Haruhiko Kuroda were published by Reuters on Tuesday.

In April, the country’s central bank will launch a pilot program to assess the viability of a digital yen. They also join an expanding group of nations that are working to create a national digital currency backed by their central bank. Governor Kuroda of the Bank of Japan addressed the public on the introduction of the digital yen. 

Secure Digital Payment System

The Bank of Japan also insists that it is prepared to provide a secure digital payment system to the public through the CBDC. In addition, the Bank of Japan will provide further two years of testing after the completion of the pilot program. The government’s eventual decision to fully issue a digital yen will also depend on these developments.

The Governor stated:

“Ensuring the coexistence of CBDC with various other forms of money… is something that we need to and will in fact achieve in the future.”

Kuroda further added:

“There are various options lying before us in terms of how and when to carry this out. But it’s our duty as a central bank to prepare ourselves to respond flexibly to any change in circumstances.”

The prospect of a digital currency issued by a national central bank has entered the mainstream of digital asset discussion. On the other hand, Japan is now one of several countries that have pledged to develop a digital version of their own money for widespread usage.