Haruhiko Kuroda, the Governor of the Bank of Japan (BOJ), declared on Tuesday that the Bank needs to “prepare thoroughly” for a time in the near future, where it will launch its own digital currency.
The Bank of Japan (BOJ) is expected to start exploring digital assets in spring 2021. Kuroda said it’s very important to create a central bank digital currency to keep up with other central banks that have already taken this step.
China has a project to establish a digital yuan, which is already in the public trial phase. South Korea has published a plan for creating a CBDC as well. The trial testing is believed to happen later this year.
Even though the date to launch its digital yen isn’t decided yet, the governor thinks it is not wise to wait until the cryptocurrency will become a necessity.
“From the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, it’s important to prepare thoroughly to respond to changes in circumstances in an appropriate manner.”Kuroda said.
The bank had already announced back in October the possibility of starting exploring how to manage its CBDC in 2021. According to the announcement, the first stage will begin in April, and it will include the examination of every basic function of a CBDC, how it will be launched, and how it will get traded to people.