Last updated on November 17th, 2022 at 01:08 pm
Japan is currently researching the appropriate way to float its CBDC, like many other countries. A Bank of Japan executive, Shinichi Uchida, has stated that the central bank won’t sacrifice simplicity in the development and usage of digital currency.
Based on a report by Reuters, the executive stated this during a speech, “To achieve vertical coexistence, a relatively simple central bank digital currency (CBDC) design is desirable for the private sector to use it as an ingredient” in creating their CBDC. The BOJ has every plan of ensuring that the CBDC works with existing payment gateways.
To ensure that simplicity is the core of the project, it is most likely that users of traditional payment channels will easily combine it with CBDC because both will be used from a single wallet. It will be designed to ensure that anyone could use the CBDC by merely switching from one channel to the other in the wallet.
The second phase of the experiments on CBDC will start in April 2022, and they will focus on checking some parameters that affect its functioning. It will analyze the maximum amount of CBDC that will be sent by users, and so on.
Japan is not the only country that is researching how to create its CBDC, as a way to improve the functioning of its payment system. The aim is to regulate and heighten digital transactions within and outside the country. At the moment, many countries are at the research stage, with no working CBDC available.
