On April 5th, local time, the Bank of Japan said that it would start to test the central bank’s digital currency demonstration from today.
According to the Bank of Japan, digital currency can be used electronically like current paper money and coins. Although “there is no plan to issue it at present”, because many central banks are conducting relevant research, the Bank of Japan began on the 5th to confirm basic functions such as digital currency issuance and circulation. Carry out the test. The test will be carried out on the system. The test time is expected to be one year and will be completed in March next year.
In addition to verifying the basic functions such as the issuance and circulation of digital currency, the Bank of Japan’s digital currency experiment will also verify the higher functions required for money, such as setting a ceiling on currency holdings. After that, if necessary, the Bank of Japan may conduct a test experiment to consider involving private enterprises and consumers.
The Bank of Japan believes that it is necessary to prepare for future environmental changes from now on, and to ensure the stability and efficiency of the settlement system in the future.
The Japan Broadcasting Association (NHK) commented that China is in the lead in the field of digital currency.