© Reuters. FILE PHOTO: Banknotes of Japanese yen are seen in this illustration picture taken September 23, 2022. REUTERS/Florence Lo/Illustration
By Leika Kihara
TOKYO (Reuters) – The Bank of Japan (BOJ) said on Friday it has decided to launch a pilot programme in April for issuing a digital yen, moving a step closer to launching a central bank digital currency (CBDC) in a country that lags in digitising its payment systems.
The move, which was widely expected, will follow two years of experiments the central bank has been conducting to decide whether to issue a CBDC.
“Our hope is that the pilot programme will lead to improved designs through discussion with private businesses,” BOJ Executive Director Shinichi Uchida said in opening remarks at the central bank’s meeting with private-sector executives.
While it was up to the public to decide whether to actually issue a digital yen, the BOJ will “continue to make thorough preparations” when circumstances lead to the launch of a CBDC, the central bank said in a statement.