Bank of Japan says CBDC needs to be ready to offer a safe digital payment system to the public
According to the Governor of the Bank of Japan, the central bank must be ready to issue central bank digital currencies (CBDC) that coexist with various other forms of money in order to offer the public a safe digital payment system.
By Anna B Kiwanuka
The Governor of the Central Bank of Japan, Haruhiko Kuroda, recently stated that the Bank of Japan needs to be ready to issue a CBDC to offer the public a safe digital payment system.
The country’s central bank is set to begin a pilot program in April to test the functionality of a digital yen. Japan is joining a growing list of nations seeking to establish a central bank digital currency for their own perspective.
Speaking on the arrival of a digital yen for the Japanese public, central bank Governor Kuroda discussed its necessity. Kuroda said, “Ensuring the coexistence of CBDC with various other forms of money is something that we need to and will in fact achieve in the future.”
“There are various options lying before us in terms of how and when to carry this out. But it’s our duty as a central bank to prepare ourselves to respond flexibly to any change in circumstances. The Bank of Japan is undoubtedly maintaining its CBDC and is ready, to present a safe digital payment system to the public,” he added.
Additionally, the Bank of Japan is set to follow up the pilot program by offering two years of experiments. Those developments will establish whether or not the government will fully issue a digital yen.
A central bank digital currency has become a vital part of the discourse within the digital asset industry. Japan has joined the growing list of entities committed to creating a digital alternative of their own currency for public use.