Bank of Japan Speeds Up Development of CBDC
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The Bank of Japan (BoJ) is speeding up discussions on issuance of central bank digital currency (CBDC), Japan Today has learned.

The BOJ’s department director-general, Takeshi Kimura, claims the development is currently a top priority for the regulator.

"We will move forward with discussions while pushing up the level of consideration beyond the preparatory stage," Kimura added.

The BOJ official declined to give a timetable for the launch of the CBDC, but admitted that the new digital currency will replace cash and force the consolidation of other electronic payments.

The bank's intentions to accelerate the development of a national digital currency are linked to the progress of China, which is preparing to phase out the US dollar on the domestic market.

Bank of Japan to Test a Digital Yen

In July 2020, the People's Bank of China (PBoC), the country's central bank, began exploring the use of a CBDC with China's largest food delivery giant Meituan Dianping backed by Tencent Holdings Ltd.

Previously, iHodl reported that Chinese ride-sharing giant Didi also signed an agreement with the PBoC to test the digital yuan — officially known as the Digital Currency Electronic Payments (DCEP).

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