The Bank of Japan to launch its CBDC pilot before May

Japan, a country that bans foreign stablecoins like USDT, plans to start a central bank digital currency (CBDC) pilot project in April 2023. It will be aimed at attracting private businesses and testing the ecosystem.

February 17 Bank of Japan (BoJ) released Opening remarks by its Executive Director Shinichi Uchida at the CBDC Committee meeting. In it, Uchida announces that the Bank has decided to launch a digital yen pilot program in April after completing a proof of concept that began in 2021.

The pilot test will continue to work on the technical feasibility of the “digital yen” and extend the experiment to simulate the CBDC ecosystem with private companies. As the official clarifies, during the pilot there will be no real retail transactions, only simulated ones.

Uchida’s speech focused on the design of the future of CBDC and the need to consult with the private sector on alternative data models, architectures for offline payments, and other vital elements of the system. A CBDC forum will be created for this kind of consultation.

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The news of the CBDC pilot project was welcome as local media reported the Bank of Japan’s intention back in November 2022. From these reports, it is known that at least three Japanese megabanks and regional banks will cooperate with the Bank of Japan.

Meanwhile, the Japanese authorities are also considering lifting the ban on foreign stablecoins, which took effect in 2022. According to the Japan Financial Services Agency (FSA), the amendments must be adopted by June 2023. into the market automatically, a green light will be shown to those coins that have successfully passed the individual verification.

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