March 29, 2023
In order to provide the public with a secure digital payment system, the Bank of Japan’s governor, Haruhiko Kuroda, said the institution must be prepared to issue central bank digital currencies (CBDC) that cohabit with various other forms of payment.
In an effort to catch up to leader China in the development of a CBDC, the central bank will begin a pilot program in April to test the use of a digital yen.
In a speech he gave at a seminar on financial technology, Kuroda stated, “We need to and will actually achieve the coexistence of CBDC with different other forms of money…
“We have a number of choices in front of us regarding when and how to execute this. However, it is our responsibility as a central bank to get ready so that we can adapt quickly to any shift in the situation, he said.
According to the BOJ, the pilot program, which will come after two years of tests, will help it be ready in the event that the government chooses to issue a digital yen.
Source: Reuters
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