Japan has announced its intentions to explore the digital yen’s feasibility through an expert panel for the same.
Japan has reportedly made plans to constitute a panel of experts in April to research the digital yen. The Bank of Japan (BOJ) has been conducting research studies on a central bank digital currency (CBDC) for the past couple of years. The study’s findings will likely be used by Japan’s ministry of finance’s expert panel to devise a framework for the digital yen.
Coincidentally, the Bank of Japan is also supposed to conduct a pilot program concerning the digital yen shortly, in collaboration with the private sector. Though the officials of the central bank have not confirmed any dates for the launch of the digital yen, they are expected to work in tandem with the expert panel to study the legal and operational issues of the central bank digital currency.
The current frenzy to launch CBDCs has been around for a while. Several countries and central banks worldwide have resorted to conducting research studies on CBDCs to explore the benefits of blockchain and crypto. While most such programs are in their research phase, countries like Nigeria have already launched their own CBDC.
Private companies are also not far behind, with Meta announcing its plans to launch their own currency four years back. Regulatory issues of crypto are proceeding at a fast pace in Europe. In Japan’s case, regulators have always promoted the use of crypto and blockchain, but in a regulated manner. Earlier this year, even the Prime Minister of Japan expressed the benefits of crypto at an event.