The Bank of Japan is set to launch the second phase of its proof-of-concept to pilot complex and additional functions with a central bank digital currency (CBDC) as the bank has already explored core functions in Phase 1.
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The Japanese financial regulator said in a press release on Friday that Phase 2 is set to be launched in April this year. During the second phase, it wants not only to test the technical feasibility of CBDC, but also to utilize the "skills and insights of private businesses in terms of technology and operation for designing a CBDC ecosystem."
"Continuing to draw on your experiences and insights, we are determined to design a CBDC that would be acceptable to both society at large and end users," the central bank said.
In Phase 1, which started last April, the Bank of Japan built an experimental environment for a CBDC ledger. During the test, the bank confirmed that the basic transactions related to CBDC could achieve the "processing performance required for frequent and low-value retail payments."
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