Japan’s Central Bank Will Test Digital Yen Cautiously

In the last few years, both developed and developing nations have expressed a growing interest central bank digital currency. Recently, the Bank of Japan announced a cautious approach towards digital Yen and stated that it will follow similar development paths to Sweden. BOJ said that the final decision about whether CBDC will be issued is expected to be made in 2026.

China is the only country that has large-scale pilot tests

BOJ regards the CBDC framework closely to the overall settlement system. Therefore, during its experimental phase, the central bank believes that one of the key issues is to ensure it is compatible with its financial infrastructure as well as other CBDCs.

Kazushige Kamiyama (head of the BOJ’s payment system department) stated in an interview that Sweden’s planned and staged expansion of experiments is better than China’s, as reported Bloomberg.

China launched a pilot program to test its digital currency earlier in the year at the Beijing Winter Olympics. This was done in an effort to encourage wider adoption of the digital Yuan.

Riksbank in Sweden, however, has been focusing on smaller scale technical research to see if the CBDC could be integrated into a system of settlement with other digital payment providers. So far, neither Riksbank or BOJ have made a decision about whether to issue digital currency.

Kamiyama stated that emerging countries are more likely to issue electronic money than developed nations due to their weaker payment networks. Kamiyama announced that the next phase of digital Yen studies will be launched in this month’s second phase.

The US Treasury Secretary praises CBDC

Janet Yellen, US Treasury Secretary, made a speech that was solely about cryptocurrency. She noted that a CBDC or other stablecoins might be more popular as a payment method than Bitcoin. Due to BTC’s volatility, she suggested that the Fed-issued digital money could be more popular than Bitcoin for exchange.

The Depository Trust & Clearing Corporation, the US’s largest securities processor, has launched Project Lithium to examine how real-time transactions using cash-like tokens can be cleared and settled.

This indicates that the US is actively investigating the benefits and drawbacks of CBDC and is setting the stage for future research and experiments.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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