Recently, the Bank of Japan (BOJ) announced to start the first phase of the testing of its central bank digital currency (CBDC) known as Digital Yen by the next year. However, a Senior Official from the central bank of Japan has said that they have not yet made any final decision regarding the launch of their centralized digital currency as they want to know what the country’s public thinks of it.
Digital Yen needs the support of Japanese Public
According to a Bloomberg report published on October 23, 2020, the Head of the payment system department of the Bank of Japan (BOJ) Kazushige Kamiyama has said that their respective central bank digital currency Digital Yen needs the support of the Japanese public. He said that they cannot launch digital yen unless it is supported completely by the people of Japan. Therefore, he said that they have not made any conclusion so far. He said:
“There is no conclusion yet. At the end of the day there’s no way we can proceed without gaining sufficient understanding from the Japanese public.”
The Bank of Japan actually wants to go deep in the study of central bank digital currency. They want to know the requirements that are needed for the launch of a CBDC and how an individual can operate this digital currency. The central bank wants to make sure that both cash and digital yen can exist together for improving the financial system.
He said, “we have clearly stated that banknotes and digital currency will coexist. The digital currency won’t be useful to deepen negative rates because there will be banknotes to which the rates can’t be applied.”
Recently, the Bank of Japan announced to start the pilot trials of its central bank digital currency. BOJ said in a report that it will begin testing its CBDC by the next year.
Where some central banks such as the People’s Bank of China are still in the testing phase, the central bank of The Bahamas has officially rolled its central bank digital currency and becomes the first-ever country to issue a CBDC.