CBDC Not Widely Recognized in Japan Despite Ongoing Trials, R&D Efforts: Details

In Japan, the concept of CBDCs has not spread far enough to residents, new findings show. Less than 20 percent of Japan’s population is familiar with the term. CBDCBank of Japan (BoJ) Governor Kazuo Ueda made the claim during a recent speech. He also noted that while another 20 percent of Japanese residents had heard of something called CBDC, they didn’t know or understand the concept at all. Addressing this awareness issue, Ueda elaborated on what CBDCs are and why they make a cost-effective alternative to the currently used cash notes.

In his speech, the BoJ governor supported the emergence of a national CBDC, saying it could facilitate faster payments of large denominations, while noting other potential benefits. He also appreciated that CBDCs only require digital wallet storages, just like cash notes require physical storage locations.

“Retail CBDCs have been explored in many countries, including Japan, on the grounds that they are comparable to cash — in other words, banknotes and coins — in terms of their role and functions as a means of payment. will align. Cash is the direct responsibility of the central bank. This is in stark contrast to existing digital payment methods. Ueda said.

According to the BoJ governor – the nature of money changes is happening now with the launch of digital currencies like CBDCs.

Built on blockchain networks and issued by central banks, CBDCs are virtual tokens of fiat currencies. R&D and trials around CBDCs have heated up in many parts of the world, particularly in Asia.

Japan, last July, Start A series of discussions with 60 companies on a pilot program to develop a digital yen. Several major Japanese banks, as well as tech companies such as Sony and Toyota’s Lawson, were also made part of the project.

The Japanese CBDC entered it. Test phase Around April last year where the BoJ wanted to analyze the technical feasibility and use cases of the digital yen. Japan could see a wider rollout of its digital JPY by 2026.

India, ChinaAnd Hong Kong are also working rapidly to develop and deploy their respective CBDCs.

---