The Bank of Japan (BOJ) began experiments on April 5 to study the feasibility of issuing its own digital currency, joining efforts by other central banks that are aiming to match the innovation in the field achieved by the private sector, Report informs referring to CNA.
The first phase of experiments, to be carried out until March 2022, will focus on testing the technical feasibility of issuing, distributing and redeeming a central bank digital currency (CBDC), the BOJ said in a statement.
The BOJ will thereafter move to the second phase of experiments that will scrutinize more detailed functions, such as whether to set limits on the amount of CBDC each entity can hold.
If necessary, the central bank will launch a pilot program that involves payment service providers and end users, BOJ Executive Director Shinichi Uchida said last month.