The Bank of Japan will begin coordinating a trial of issuing a “digital yen” with Japan’s three major banks and regional banks next spring, according to the Nikkei. Nikkei said the Bank of Japan will verify issues such as whether there are deposits and withdrawals in bank accounts within two years, and decide whether to issue a digital currency in 2026.
The move was widely expected. The second phase of the Bank of Japan’s digital currency trial began in April this year and will last about a year.
The Nikkei also reported that the Bank of Japan will start working with banks participating in the trial next spring to check whether the central bank’s digital currency can be transferred between accounts.
The paper also said the trial will also test whether the functionality will still function properly in the event of a network outage, such as caused by a power outage.
Bank of Japan Governor Haruhiko Kuroda also called on global policymakers at a seminar to step up efforts to curb the possible risks posed by the widespread use of private digital currencies.
