While there are plans to set up a panel in April, the Japanese government is also launching a pilot program for a digital yen in the same month.
As the race for digital currencies heats up, the Japanese government is considering launching a panel to investigate the practicality of a digital yen. The finance ministry is reportedly considering setting up an expert panel in April to examine the feasibility of issuing a digital yen. Since the Bank of Japan started research cbdc In 2020, several experiments were conducted to test the issuance of digital currencies. Following the success of a test experiment, the government is expected to roll out a central bank digital currency immediately.
Japan launches digital yen panel
Reportedly, the Digital Yen panel will focus on creating a framework for the digital currency. The framework will be based on the findings from over Proof-of-concept experiment for two years Organized by BOJ. According to central bank officials, there is no concrete plan. The goal is to create a framework for the anticipated digital currency issuance.
While there are plans to set up a panel in April, the Japanese government is also launching a pilot program for a digital yen in the same month. This follows an earlier proof-of-concept phase to test the physical feasibility of a CBDC. The first phase began in April 2021 as the central bank created an experimental environment around the CBDC ledger. It also confirmed the basic functions related to currency, such as issuing, making payments and transfers. POC Phase 2 confirmed additional and more complex core functions than Phase I. The technical feasibility and processing performance of the digital yen were also investigated in this phase.
More on Japan’s Digital Yen
As the panel creation and digital yen pilot program coincide next month, the BOJ plans to take its experiments further. Shinichi Uchida, executive director of the central bank, where did it go,
“The objective of the pilot program is two-fold: first, to test the technical feasibility not fully covered by PoS and second, to design a CBDC ecosystem in the eventuality that the private sector is not fully covered by PoS in terms of technology and operations.” Using the skills and insights of businesses for social implementation.
Another expected event in April is a change of leadership at the Bank of Japan. The current governor of the bank, Haruhiko Kuroda, will step down after the end of his second five-year term in April. Kazuo Ueda is expected to replace him as the governor of the country’s central banks. The panel could be one of those measures, as the executive director promised before the digital yen was released. He stated that “if a CBDC were to be issued in the future, exploring its framework in such a phased manner and engaging in highly transparent communication with the private sector are essential steps to drive adoption in society.”

Ibukun is a crypto/finance writer interested in delivering relevant information using non-complicated words to reach all types of audiences. Apart from writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
Bitcoin Crypto Related Post