Head of the Bank of Japan Haruhiko Kuroda revealed that the regulator will initiate tests with the governmental digital currency in the upcoming spring of this year.
Kuroda emphasized that the Central Bank of Japan aims to keep pace with related developments in other countries. In the meantime, there is no concrete plan to introduce the digital yen just yet. However, Kuroda thinks that whenever the need to introduce a state cryptocurrency develops, the Bank of Japan will be prepared for this.
“Considering the need of ensuring the stability and effectiveness of payment and settlement systems in Japan, it is essential to thoroughly get ready for the potential implementation of new technologies. We have to respond properly to the changing situation,” noted the Governor.
Kuroda also noted that the initial phase of trials regarding the fundamental functions of state cryptocurrency will begin at the eve of the new financial year. That statement suggests testing of the digital yen will probably begin as early as April 2021.
Back in the beginning of February, a G7 meeting was held, in the framework in which financial ministers from leading countries, including Japan, reviewed the concept of governmental cryptocurrencies and digital taxation.
