Digital Yen

The Bank of Japan, the country’s central bank, will conduct experiments with three megabanks and regional banks on a digital yen, according to a report by Nikkei on Wednesday. 

CBDCs are the latest fad amongst central banks around the world – but how can they change our lives?

Of the Big Four central banks, including those of the EU, UK and Japan, only the Federal Reserve has not progressed beyond research mode in central bank digital currencies.

Despite launching CBDC research, Bank of Japan is still not sure nation needs digital yen. Experts fear the caution could cost Japan its competitive edge.

As central banks in China, Korea, Hong Kong and Thailand ramp up CBDC efforts, Bank of Japan is now planning a proof of concept for a digital currency.