While the Bank of Japan (BoJ) has yet to be clear about issuing a Digital Central Bank Currency (CBDC), it will experiment with the country’s leading banks for a pilot CBDC (digital yen) issuance.
According to a November 23 report by a local news agency Bank of Japan, a pilot CBDC issuance to try with three mega banks and regional banks started cooperation. It is reported that the offline functionality of CBDCs will be tested in the pilot.
The Bank of Japan, which plans to continue the trials for two years and make a final decision on CBDC by 2026, aims to identify and resolve customers’ problems with withdrawals or deposits by collaborating with private banks and other institutions in the experiment. The banks involved in the experiment Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group reported to be.
The Japanese government, which is very interested in blockchain technologies, established a DAO (decentralized autonomous organization) in early November, aiming to better examine the anatomy of DAOs.