Japan to start digital yen tests as CBDCs gain momentum across Asia

posted 10 months ago
As central banks in China, Korea, Hong Kong and Thailand ramp up CBDC efforts, the Bank of Japan is now planning a proof of concept for a digital currency. Bank of Japan governor Haruhiko Kuroda said “Central banks share the view that it is not an appropriate policy response to start considering CBDC only when the need to issue CBDC arises in the future. From the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, we consider it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner.”

Last month, the central banks of China, Hong Kong, Thailand and the United Arab Emirates announced that they were collaborating on a “Multiple CBDC Bridge” project for cross-border payments. And, earlier this month, the Bank of Thailand (BoT) announced the successful completion of its project exploring the use of CBDC for payment and settlement by the corporate sector. The BoT intends to focus on the research and development of a retail CBDC in 2021-2022.
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