MNI BRIEF: BOJ To Launch CBDC Pilot Program in April

The Bank of Japan said on Friday it will launch a pilot program of a central bank digital currency in April.

The BOJ said it will complete the Proof of Concepts (PoCs), through which it has been confirming the technical feasibility of the basic functions of a CBDC.

“In the pilot program, the BOJ will develop a system for experiments, in which a central system, intermediary network systems, intermediary systems, and endpoint devices are configured in an integrated manner,” the BOJ said.

“The BOJ will, for example, test the end-to-end process flow while exploring the measures and potential challenges for connecting the experimental system with external ones. At present, actual transactions are not assumed to take place among retailers and consumers in the program.”

“Whether to issue a CBDC should be decided by discussions among the Japanese public. With a view to facilitating such discussions, the Bank will continue to make thorough preparations to respond to changes in circumstances in an appropriate manner,” the BOJ said.