Bank of Japan to Trial Digital Yen

The Bank of Japan are trialing the use of Digital Yen and plan to make a decision by 2026 about whether or not a digital currency will be issued. The Japanese Central Bank has partnered with three megabanks and regional banks to conduct a pilot scheme which will begin in Spring 2023.

According to cointelegraph, the pilot will include testing of offline functionality, ensuring the possibility of payments without the internet, and will involve the cooperation of private banks and other organizations to solve any issues regarding customer withdrawals and deposits on bank accounts. The experiment will last for two years, with the country set to make a decision in 2026.

Japan are not the only country to have announced the possibility of issuing digital currency in the future as the news comes amid several countries globally announcing plans to increase research and proceed with digital currency development initiatives. The UK have recently spoken out on the potential need for a digital pound, with the Reserve Bank of India beginning trials of a digital rupee this December, The Federal Reserve Bank of New York launching a 12-week pilot scheme, and China are leading the digital currency race with the expansion of the deployment of it's digital currency, e-CNY, to four additional provinces.