TOKYO—The Bank of Japan has completed the first phase of its Central Bank Digital Currency (CBDC) Proof of Concept (PoC) on schedule, and now says it will begin its second phase in April.
The BoJ first published a paper on its approach to CBDC in October 2020, and it began the first phase of its PoC testing in April 2021. The initial stage targeted exploring the basic functions of a CBDC – namely, issuance, distribution and redemption, Ledger Insights said.
The second phase aims to implement additional functionality of the CBDC, investigate feasibility, and uncover challenges in the process. During this phase, some key areas of interest might include balancing anti-money laundering requirements with privacy protections. The bank has also previously stressed the importance of cybersecurity for a secure CBDC environment and the incorporation of counterfeit deterrence technology to prevent various illicit activities, Ledger Insights reported.
Other Experiments
“While this PoC experiment focuses on a general purpose CBDC for consumer usage, the BoJ has also conducted experiments for a wholesale CBDC limited to financial institutions,” the report stated. “For example, starting in 2016, a joint project with the European Central Bank explored distributed ledger technology, including for cross border payments, Ledger Insights noted.
Make Sure You’re Not Missing Out!
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines email.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.