MNI BRIEF: BOJ, Banks To Begin CBDC Trials in 2023 - Press

The Bank of Japan is working with the nation’s major three banks and regional financial institutions to launch trial transactions of a central bank digital currency around April 2023, the Nikkei reported on Thursday.

During the two-year CBDC pilot program, the BOJ will work with private-sector banks to test deposits and withdrawals from accounts, and check whether the currency can work without internet access in an emergency, the Nikkei reported.

Depending on the results of the trial, the BOJ will decide whether to go ahead with a digital currency as early as 2026. BOJ Governor Haruhiko Kuroda said in January that in his personal view, a decision could be made by 2026.

The BOJ is one of several leading central banks, along with counterparts in China, the U.S. and Europe, exploring national digital currencies as a supplement to, or substitute for, physical cash as more economic activity moves online. (See MNI BRIEF: PBOC To Strengthen Digital Currency Collaboration)