Bank of Japan Starts first Electronic currency proof of concept

The first stage of Japan’s CBDC pilots will be completed by March 2022, the central bank conditions.
The Japanese central bank has launched a proof of concept due to its central bank electronic money, or CBDC, according to an official announcement on Monday.Following first trainings to test the technical feasibility of central CBDC purposes and attributes in ancient 2021, the Bank of Japan is starting CBDC analyzing in its first stage today. In this phase, the bank intends to develop a test environment for the CBDC system and run research on basic functions related to payment, issuance, distribution and accessibility of a CBDC.According to the announcement, this phase is anticipated to be completed by March 2022. The BoJ originally announced its plans to launch CBDC testing in October 2021. The bank emphasized that if it”has no plan to issue CBDC”in the standpoint of ensuring that the stability and efficacy of the total settlement and payment systems, it is still important to prepare for”modifications in circumstances in an proper way.” According to the original CBDC experimentation roadmap, the bank expects to start a pilot CBDC program involving payment service providers and end-users after the completion of the next period of testing. This stage will implement additional CBDC purposes in the test environment developed in the first stage and ascertain their feasibility.The BoJ recently announced the establishment of the Liaison and Coordination Committee to cooperate with both the private sector on the approaching CBDC pilots. 

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