The Central Bank of Japan establishes a Commission to experiment with digital currencies

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2021-04-01 20:07:45

The Bank of Japan said it had established a “liaison and coordination committee” to support planned efforts to test a central bank digital currency (CBDC) among next week.

The Central Bank of Japan establishes a Commission to experiment with digital currencies

As previously reported, Japanese central bank officials this month said their tests will begin in the spring. The purpose of the commission is to act as the point of connection between the central and private banks.

In a report dated March 26, Bank of Japan (BOJ) gave the reasons for wanting to set up a committee as follows:

“Although the Bank does not currently have a plan to issue a central bank digital currency (CBDC), from a view of ensuring the stability and efficiency of the overall payment and settlement system, the Bank will standardize equipment, including test implementation, to respond to changes in the appropriate way. During the CBDC exploration process, the Bank considered it important to apply knowledge of various stakeholders such as private sector, relevant experts and public agencies. ”

In a way, the report reflects statements from the US Federal Reserve, which is also preparing to begin sharing details of its CBDC testing with the public. The Fed has said that if it ever pursued CBDCs in production, private sector involvement would be crucial to success.

BOJ’s private sector members include a variety of banking, payment and fintech associations, according to the document. Meetings will be held virtual and “held as needed depending on the progress of the PoC”, with details established to be disclosed in consultation with members.

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