Experiments on issuing its digital currency have started with the first stage set to last for a year, the Bank of Japan said on Monday.
Preparations to begin experiments on Central Bank Digital Currency (CBDC) in the early fiscal year 2021 have started by testing the technical feasibility of the core functions and features required for CBDC,'' the Bank said.
''As necessary preparations are now complete, Proof of Concept (PoC) Phase 1 begins today," it added.
Phase 1, which will last through March 2022, is expected to result in developing a test environment for the CBDC system. It will see experiments on the CBDC basic functions such as issuance, distribution, and redemption.
In 2020, several countries, including European nations, China, and Russia, raised the possibility of launching their own digital currencies. Japan pledged to start preparations in April 2021.
Source: MAP
