Japan Trials ‘Digital Yen’ In Potential Shift To Virtual Currency

Japan is testing the waters on digital currency with a new pilot program set up by its central bank, the Bank of Japan (BoJ), to evaluate the feasibility of a ‘Digital Yen’.

The nation will experiment with the idea of a Central Bank Digital Currency (CBDC) via simulated environments where transactions will be held to determine the best way to adopt the motion. In a speech from the executive director of the BoJ, Uchida Shinichi noted that it will explore “the skill and insights of private businesses in terms of technology and operation for designing a CBDC ecosystem in the possible event of social implementation.”

From this, the BoJ is inviting private businesses in the retail sector to provide their input and participate in discussions about adopting e-currency via a forum set up by the bank.

The program will also determine if the scheme can work in rural areas and during natural disasters.

Japan has hung onto the physical dollar for a long time now due to the fact that smaller businesses and shops in the countryside are not often equipped with the right tools for contactless payment. Credit and debit cards are only now becoming more popular as times are changing.

Furthermore, after China became the first country to introduce a CBDC, the current economic climate is seeing more and more governments turn to digital currencies. Countries such as Australia, India, South Korea, Brazil, Singapore, Malaysia, South Africa, and Ghana will begin or continue their pilot stages in 2023.

[via TechCrunch and Reuters, Photo 7879136 © Bjeayes | Dreamstime.com]