Japan's central bank to conduct CBDC experiments with three banking giants - report
The Bank of Japan is planning to conduct experiments on a central bank digital currency with three of the country's megabanks and regional banks, according to a Wednesday report by Nikkei.
In the spring of 2023, the BoJ will collaborate with private lenders and other organizations to determine whether there's any issues with deposits and withdrawals in bank accounts, the report said, and verify if a digital yen can withstand natural disasters and in areas with no internet connection.
The experiments are planned to take hold for about two years and the BoJ will decide in 2026 on issuing a digital yen.
The banks were not specified in the report, though some of the largest banks in Japan include Mitsubishi UFJ Financial Group (MUFG), Japan Post Bank (OTCPK:JPSTF) (OTCPK:JPPTY) and Mizuho Financial Group (MFG) (OTCPK:MZHOF).
The move comes as a growing list of central banks across the globe explore the risks and benefits of CBDCs in a pilot environment, including Iran, Thailand and Jamaica.