Bank of Japan officials have said they don’t have concrete plans to issue a digital currency.

Japan’s finance ministry plans to launch an expert panel next month to explore the feasibility of a central bank digital currency (CBDC), or digital yen, public broadcaster NHK reported without saying where it got the information.

The panel is expected to discuss the creation of a framework for a digital currency using the findings of more than two years of proof-of-concept experiments conducted by the Bank of Japan. A digital yen pilot program involving the BOJ and other financial stakeholders starts at the same time.

The ministry plans take into account the opinions of the panel and prepare for the possible introduction of a digital yen even though BOJ officials have said they don’t have any plans to issue one, according to the report.

As president of the Group of Seven (G-7) industrialized nations this year, Japan is planning to steer tougher global crypto regulations, Kyodo reported earlier this week.

The post Japan’s Finance Ministry to Explore Digital Yen Feasibility: Report appeared first on Crypto Insider.

The move comes after more than two years of proof-of-concept experiments by the BoJ.

Japan will launch a pilot programme in April to test the use of its version of the central bank digital currency (CBDC) known as the digital yen, its central bank said on Friday.

“We plan to develop a system for experiments,” Bank of Japan (BoJ) Executive Director Shinichi Uchida said in remarks during the fifth meeting of the BoJ Liaison and Coordination Committee on Central Bank Digital Currency.

“The aim of the pilot program is twofold: first, to test the technical feasibility…and second, to utilize the skills and insights of private businesses in terms of technology and operation for designing a CBDC ecosystem in the possible event of social implementation,” Uchida said.

The move comes after more than two years of proof-of-concept experiments by the BoJ around the digital yen, even as China’s digital yuan continues to lead the CBDC race globally, which has extended to more than 105 countries representing over 95% of global GDP.

The move also comes at a time when the BoJ is set for leadership transition with Kazuo Ueda expected to take over the top job from Haruhiko Kuroda, whose second five-year term ends in April.

In November 2022, Nikkei reported that starting in the spring of 2023, the BoJ would work on experiments on a digital yen with three megabanks and regional banks in the country.

“At present, the pilot is not expected to see any actual transactions between retailers and consumers, the bank said, while adding that it will establish a CBDC Forum and invite private businesses engaged in retail payments or in related technologies to participate.

The post Japan Will Launch Pilot for Issuing Digital Yen In April appeared first on Crypto Insider.