Japan To Launch an Expert Panel to Explore Digital Yen
- An expert panel will be launched to explore CBDCs and the feasibility of issuing a digital Yen.
- The Bank of Japan has also launched a pilot program to test the technical feasibility of a CBDC.
The Japanese Ministry of Finance is reportedly exploring the viability of a central bank digital currency (CBDC) and is planning to launch an expert panel next month for the same. The expert panel will be tasked with gauging the feasibility of issuing a digital yen.
According to a report by NHK, in addition to exploring the use cases of a digital yen, the expert panel will also work on a framework for CBDCs. The panel’s research will be aided by the findings of a two-year-long technical study carried out by the Bank of Japan, which is the country’s central bank.
Officials from the Bank of Japan told local media that, as of now, the central bank had no concrete plans to start issuing digital currencies. The officials anticipate some time before the legal aspects of the plan are hammered out, and the framework surrounding a digital yen is finalized.
However, the Ministry of Finance will take into consideration the findings of the expert panel and accordingly decide whether to introduce a digital yen. The launch of the panel will coincide with the launch of a pilot program by the Bank of Japan (BoJ) that seeks to test the use of its CBDC.
The pilot program aims to evaluate the technical feasibility of a CBDC and to collaborate with private businesses to design a CBDC ecosystem. BoJ Executive Director Shinichi Uchida stated, “the aim of the pilot program is twofold: first, to test the technical feasibility … and second, to utilize the skills and insights of private businesses in terms of technology and operation for designing a CBDC ecosystem in the possible event of social implementation.”