The Bank of Japan plans to carry out together with three megabanks a pilot project to test the national digital currency (CBDC), Nikkei has reported.
According to the publication, the new digital yen test phase will begin in the spring of 2023. The experiments, which will last two years, will also see the participation of local financial institutions.
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The country’s central bank has stated the main task of the pilot is to verify the problems of depositing and withdrawing the CBDC from bank accounts.
Considering the possibility of catastrophes and other emergencies, the tests will include the circulation of digital yen in an environment without Internet.
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As Bank of Japan chief Haruhiko Kuroda has previously said, the institution will make a decision on whether to issue a CBDC by 2026 after comprehensive tests.