Bank Of Japan Committee for CBDC Experimentation a ‘Necessary Step’

The Bank of Japan formed a new committee dedicated to state-backed digital currency experimentation, even though it will not issue a token yet.

In a release dated March 26, 2021, the Bank of Japan (BoJ) announced the formation of a new committee to oversee experiments related to central bank-issued digital currencies (CBDC).

The central bank said that it will conduct its CBDC research in three phases. The committee includes representatives from the BoJ, Ministry of Finance, the financial services agency, and various industry lobbyists.

The first stage of the committee’s experimentation plan, commencing in April 2021, will cover currency issuance and distribution.

Later phases will involve feasibility studies on CBDC usage, including during communication blackouts. The BoJ also stated that it plans to approach the country’s private sector for support at some point.

Staying Ahead of the Curve

While commercial pilot programs are in the pipeline, the bank stressed that it will not issue a CBDC anytime soon. Instead, the central bank is simply preparing for a future where digital tokens are ubiquitous and even necessary for trade. Speaking at the committee’s first meeting, BoJ director Shinichi Uchida called the experiments “a necessary step.”

Notably, Japan was among the first nations to recognize the potential and promise of the cryptocurrency asset class. In 2016, the country became the first to recognize cryptocurrency as legal tender — a rare decision even five years later.

Since 2017, Japan has brought cryptocurrency exchanges under its Payment Services Act (PSA). This increased regulatory compliance and vigilance brought an unprecedented level of clarity to the crypto ecosystem in Japan. As a result, the country still attracts crypto-related businesses.

Tokyo was also the headquarters of Mt. Gox, the largest crypto exchange by trading volume before it shuttered in 2014.

Japan’s decision to experiment with CBDCs puts it on the same playing field as other economies at the very least. While a Chinese digital token is imminent, the U.S. and EU are also working on prototype CBDC solutions.

India also expressed interest in a state-backed token earlier this year. However, it’s currently mulling a blanket ban on decentralized cryptocurrencies.

Public Adoption of a Potential Japanese CBDC

However, the public at large is not nearly as enthusiastic about cryptocurrencies as the Japanese government and businesses. A recent study found that 78% of Japanese in the 20–59 age bracket viewed cryptocurrencies in a negative light. In stark contrast, two-thirds of Americans viewed the market in a positive light instead.

Perception about Crypto Investments US JP: bitFlyer

While it’s unclear why this skepticism exists, the slew of exchange hacks over the past decade could be a factor. Notably, though, the Japanese population always steered clear of digital payments in general. Cash makes up a significant portion of payments in the country.

According to a recent survey, only around a fifth of all Japanese households use digital payment methods for small transactions. Even for larger transactions, at least half of all households prefer banknotes over electronic transfers.

Japan’s affinity for cash is often attributed to low interest rates and the wide availability of ATMs. Still, a government-backed token could be met with more optimism due to reduced risk and volatility.

Disclaimer


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Leave a Reply

Your email address will not be published. Required fields are marked *

bitcoin
Bitcoin (BTC) $ 34,276.00 2.94%
ethereum
Ethereum (ETH) $ 1,936.76 0.46%
tether
Tether (USDT) $ 1.00 0.43%
polkadot
Polkadot (DOT) $ 15.63 1.63%
cardano
Cardano (ADA) $ 1.34 0.90%
binance-coin
Binance Coin (BNB) $ 294.56 3.15%
xrp
XRP (XRP) $ 0.644563 0.61%
litecoin
Litecoin (LTC) $ 132.48 0.22%
chainlink
Chainlink (LINK) $ 18.39 0.96%
bitcoin-cash
Bitcoin Cash (BCH) $ 472.31 3.25%
stellar
Stellar (XLM) $ 0.259056 1.03%
usd-coin
USD Coin (USDC) $ 1.00 0.08%
dogecoin
Dogecoin (DOGE) $ 0.262377 11.51%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 34,231.00 2.85%
uniswap
Uniswap (UNI) $ 17.32 0.08%
aave
Aave (AAVE) $ 201.11 0.58%
cosmos
Cosmos (ATOM) $ 9.85 0.55%
monero
Monero (XMR) $ 208.12 3.63%
eos
EOS (EOS) $ 3.78 1.62%
bitcoin-sv
Bitcoin SV (BSV) $ 128.44 2.19%
tron
TRON (TRX) $ 0.065265 0.59%
nem
NEM (XEM) $ 0.113440 0.85%
iota
IOTA (MIOTA) $ 0.794607 0.59%
vechain
VeChain (VET) $ 0.078020 0.31%
tezos
Tezos (XTZ) $ 2.68 2.95%
theta-token
Theta Network (THETA) $ 6.96 0.01%
havven
Synthetix Network Token (SNX) $ 6.54 1.26%
avalanche-2
Avalanche (AVAX) $ 11.19 0.11%
neo
NEO (NEO) $ 33.72 0.88%
terra-luna
Terra (LUNA) $ 5.30 0.50%
dash
Dash (DASH) $ 126.61 1.42%
huobi-token
Huobi Token (HT) $ 10.45 4.93%
okb
OKB (OKB) $ 10.25 1.19%
elrond-erd-2
Elrond (EGLD) $ 65.34 1.20%
crypto-com-chain
Crypto.com Coin (CRO) $ 0.102277 6.31%
the-graph
The Graph (GRT) $ 0.582347 1.27%
compound-ether
cETH (CETH) $ 38.67 0.14%
solana
Solana (SOL) $ 31.13 4.14%
maker
Maker (MKR) $ 2,176.42 1.36%
filecoin
Filecoin (FIL) $ 55.58 4.00%
cdai
cDAI (CDAI) $ 0.021564 0.15%
dai
Dai (DAI) $ 1.00 0.07%
ftx-token
FTX Token (FTT) $ 25.45 1.95%
celsius-degree-token
Celsius Network (CEL) $ 5.68 0.68%
sushi
Sushi (SUSHI) $ 6.69 2.59%
kusama
Kusama (KSM) $ 194.87 0.19%
compound-governance-token
Compound (COMP) $ 242.50 1.90%
zcash
Zcash (ZEC) $ 110.05 2.86%
ethereum-classic
Ethereum Classic (ETC) $ 42.20 1.31%
decred
Decred (DCR) $ 107.27 2.56%
binance-usd
Binance USD (BUSD) $ 1.00 0.24%
compound-usd-coin
cUSDC (CUSDC) $ 0.022134 0.20%
zilliqa
Zilliqa (ZIL) $ 0.075869 0.96%
uma
UMA (UMA) $ 8.65 3.04%
yearn-finance
yearn.finance (YFI) $ 30,715.00 0.33%
leo-token
LEO Token (LEO) $ 2.40 0.50%
pancakeswap-token
PancakeSwap (CAKE) $ 13.23 3.25%
waves
Waves (WAVES) $ 14.12 7.48%
near
Near (NEAR) $ 2.10 1.44%
amp-token
Amp (AMP) $ 0.061166 1.06%
0x
0x (ZRX) $ 0.650157 1.46%
huobi-btc
Huobi BTC (HBTC) $ 34,194.00 2.66%
algorand
Algorand (ALGO) $ 0.861508 4.04%
digibyte
DigiByte (DGB) $ 0.043603 2.40%
icon
ICON (ICX) $ 0.765185 0.49%
hedera-hashgraph
Hedera Hashgraph (HBAR) $ 0.183908 0.38%
nexo
NEXO (NEXO) $ 1.52 2.57%
xsushi
xSUSHI (XSUSHI) $ 7.79 1.52%
ethos
Voyager Token (VGX) $ 2.25 9.51%
loopring
Loopring (LRC) $ 0.225223 4.16%
thorchain
THORChain (RUNE) $ 6.42 10.37%
ontology
Ontology (ONT) $ 0.634108 0.33%
renbtc
renBTC (RENBTC) $ 34,049.00 2.93%
nano
Nano (NANO) $ 5.02 10.39%
basic-attention-token
Basic Attention Token (BAT) $ 0.551034 0.49%
omisego
OMG Network (OMG) $ 3.79 2.76%
republic-protocol
REN (REN) $ 0.359305 4.05%
zencash
Horizen (ZEN) $ 61.48 4.61%
bittorrent-2
BitTorrent (BTT) $ 0.002524 1.55%
swissborg
SwissBorg (CHSB) $ 0.487186 7.00%
ravencoin
Ravencoin (RVN) $ 0.053841 0.42%
iostoken
IOST (IOST) $ 0.019732 8.24%
qtum
Qtum (QTUM) $ 6.03 0.64%
paxos-standard
Paxos Standard (PAX) $ 1.00 0.13%
venus
Venus (XVS) $ 19.10 4.46%
blockstack
Stacks (STX) $ 0.691070 8.27%
matic-network
Polygon (MATIC) $ 1.16 2.41%
curve-dao-token
Curve DAO Token (CRV) $ 1.67 7.66%
siacoin
Siacoin (SC) $ 0.011810 13.02%
quant-network
Quant (QNT) $ 77.82 7.66%
bancor
Bancor Network Token (BNT) $ 3.05 0.83%
reserve-rights-token
Reserve Rights Token (RSR) $ 0.022471 0.05%
fantom
Fantom (FTM) $ 0.228675 8.13%
mdex
Mdex (MDX) $ 1.64 1.47%
enjincoin
Enjin Coin (ENJ) $ 1.01 2.25%
energy-web-token
Energy Web Token (EWT) $ 6.04 3.55%
lisk
Lisk (LSK) $ 2.03 2.57%
ampleforth
Ampleforth (AMPL) $ 0.861965 0.35%
balancer
Balancer (BAL) $ 17.22 0.05%
terrausd
TerraUSD (UST) $ 1.00 0.73%
ocean-protocol
Ocean Protocol (OCEAN) $ 0.417303 0.74%
husd
HUSD (HUSD) $ 1.00 0.97%
nxm
Nexus Mutual (NXM) $ 73.93 0.83%
1inch
1inch (1INCH) $ 2.57 1.87%
bitcoin-gold
Bitcoin Gold (BTG) $ 40.94 1.46%
kyber-network
Kyber Network Crystal Legacy (KNCL) $ 1.36 0.91%
verge
Verge (XVG) $ 0.021904 0.16%
decentraland
Decentraland (MANA) $ 0.502835 1.78%
alpha-finance
Alpha Finance (ALPHA) $ 0.380029 0.39%
flow
Flow (FLOW) $ 8.62 1.26%
band-protocol
Band Protocol (BAND) $ 5.47 2.45%
status
Status (SNT) $ 0.045292 4.65%
dodo
DODO (DODO) $ 0.918059 2.05%
bitcoin-cash-abc-2
Bitcoin Cash ABC (BCHA) $ 24.31 3.68%
compound-usdt
cUSDT (CUSDT) $ 0.021279 0.27%
xdce-crowd-sale
XDC Network (XDC) $ 0.057296 3.31%
staked-ether
Lido Staked Ether (STETH) $ 1,931.45 0.24%
arweave
Arweave (AR) $ 11.01 2.67%
polymath-network
Polymath Network (POLY) $ 0.148634 8.78%
safepal
SafePal (SFP) $ 0.691642 5.90%
true-usd
TrueUSD (TUSD) $ 1.00 0.28%
zkswap
ZKSwap (ZKS) $ 0.783847 5.80%
polkastarter
Polkastarter (POLS) $ 1.01 1.63%
ethlend
Aave [OLD] (LEND) $ 2.11 0.65%
helium
Helium (HNT) $ 11.82 1.39%
civic
Civic (CVC) $ 0.189400 1.74%
pundi-x
Pundi X [OLD] (NPXS) $ 0.000928 11.48%
kava
Kava.io (KAVA) $ 3.40 0.34%
golem
Golem (GLM) $ 0.237803 8.26%
harmony
Harmony (ONE) $ 0.059429 1.09%
nucypher
NuCypher (NU) $ 0.228624 1.96%
holotoken
Holo (HOT) $ 0.005934 0.72%
nusd
sUSD (SUSD) $ 1.01 0.44%
electroneum
Electroneum (ETN) $ 0.006111 0.22%
nervos-network
Nervos Network (CKB) $ 0.012625 4.48%
derivadao
DerivaDAO (DDX) $ 2.29 1.46%
district0x
district0x (DNT) $ 0.127481 0.52%
bitcoin-diamond
Bitcoin Diamond (BCD) $ 2.05 3.46%
trust-wallet-token
Trust Wallet Token (TWT) $ 0.301235 0.49%
rif-token
RSK Infrastructure Framework (RIF) $ 0.153174 5.10%
swipe
Swipe (SXP) $ 1.83 3.07%
gnosis
Gnosis (GNO) $ 145.62 1.46%
numeraire
Numeraire (NMR) $ 27.80 2.09%
rook
KeeperDAO (ROOK) $ 135.37 7.16%
kucoin-shares
KuCoin Token (KCS) $ 6.85 0.81%
btc-standard-hashrate-token
BTC Standard Hashrate Token (BTCST) $ 21.26 3.23%
aragon
Aragon (ANT) $ 3.60 1.57%
fetch-ai
Fetch.ai (FET) $ 0.204723 1.22%
litentry
Litentry (LIT) $ 2.42 0.03%
funfair
FUNToken (FUN) $ 0.017097 0.06%
chiliz
Chiliz (CHZ) $ 0.244866 3.35%
seth
sETH (SETH) $ 1,958.73 0.34%
oasis-network
Oasis Network (ROSE) $ 0.052283 2.14%
injective-protocol
Injective Protocol (INJ) $ 5.97 0.95%
vethor-token
VeThor Token (VTHO) $ 0.006629 3.91%
saffron-finance
saffron.finance (SFI) $ 310.95 4.03%
augur
Augur (REP) $ 12.46 1.27%
the-sandbox
The Sandbox (SAND) $ 0.199920 0.57%
singularitynet
SingularityNET (AGIX) $ 0.148998 2.36%
secret
Secret (SCRT) $ 1.03 6.37%
telcoin
Telcoin (TEL) $ 0.022963 0.75%
serum
Serum (SRM) $ 2.89 0.41%
gatechain-token
GateToken (GT) $ 3.14 1.03%
mainframe
Hifi Finance (MFT) $ 0.006080 4.44%
sbtc
sBTC (SBTC) $ 34,500.00 2.64%
compound-uniswap
cUNI (CUNI) $ 0.348284 0.66%
ardor
Ardor (ARDR) $ 0.111234 2.36%
vai
Vai (VAI) $ 0.905189 2.26%
utrust
UTRUST (UTK) $ 0.217892 0.16%
prometeus
Prometeus (PROM) $ 11.78 2.70%
reddcoin
Reddcoin (RDD) $ 0.002049 22.46%
monacoin
MonaCoin (MONA) $ 1.41 1.27%
noia-network
Syntropy (NOIA) $ 0.167453 2.48%
compound-0x
c0x (CZRX) $ 0.013415 3.19%
wink
WINkLink (WIN) $ 0.000398 0.05%
ankr
Ankr (ANKR) $ 0.072332 6.79%
bytom
Bytom (BTM) $ 0.061121 0.33%
rocket-pool
Rocket Pool (RPL) $ 8.89 0.92%
origintrail
OriginTrail (TRAC) $ 0.239662 10.79%
steem
Steem (STEEM) $ 0.258800 6.12%
maidsafecoin
MaidSafeCoin (MAID) $ 0.655862 1.73%
tomochain
TomoChain (TOMO) $ 1.39 5.90%
edgeware
Edgeware (EDG) $ 0.006151 7.89%
skale
SKALE (SKL) $ 0.224015 0.40%
stratis
Stratis (STRAX) $ 1.29 0.30%
hegic
Hegic (HEGIC) $ 0.073711 5.21%
komodo
Komodo (KMD) $ 0.618020 1.21%
bitshares
BitShares (BTS) $ 0.044118 0.24%
unibright
Unibright (UBT) $ 1.02 8.72%
coinmetro
CoinMetro (XCM) $ 0.272612 4.18%
ark
Ark (ARK) $ 0.773584 3.29%
mirror-protocol
Mirror Protocol (MIR) $ 4.45 6.08%
keep-network
Keep Network (KEEP) $ 0.275347 2.02%
neutrino
Neutrino USD (USDN) $ 0.995964 1.31%
iexec-rlc
iExec RLC (RLC) $ 2.68 4.20%
harvest-finance
Harvest Finance (FARM) $ 48.31 3.41%
iotex
IoTeX (IOTX) $ 0.016003 2.74%
badger-dao
Badger DAO (BADGER) $ 8.67 4.73%
redfox-labs-2
RedFOX Labs (RFOX) $ 0.058025 2.10%
empty-set-dollar
Empty Set Dollar (ESD) $ 0.042563 4.26%
ultra
Ultra (UOS) $ 0.452550 5.52%
wanchain
Wanchain (WAN) $ 0.538157 0.25%
iris-network
IRISnet (IRIS) $ 0.071225 0.92%
perpetual-protocol
Perpetual Protocol (PERP) $ 5.18 10.73%
trustswap
Trustswap (SWAP) $ 0.821482 9.70%
tokenlon
Tokenlon (LON) $ 3.13 1.23%
orion-protocol
Orion Protocol (ORN) $ 5.56 4.13%
titanswap
TitanSwap (TITAN) $ 3.41 1.64%
tether-gold
Tether Gold (XAUT) $ 1,783.44 0.13%
wax
WAX (WAXP) $ 0.097725 2.04%
yfii-finance
DFI.money (YFII) $ 1,796.94 1.16%
aelf
aelf (ELF) $ 0.157050 7.21%
haven
Haven (XHV) $ 7.51 6.41%
pax-gold
PAX Gold (PAXG) $ 1,790.50 0.12%
defipulse-index
DeFiPulse Index (DPI) $ 231.47 0.19%
math
MATH (MATH) $ 1.16 0.50%
api3
API3 (API3) $ 2.18 7.27%
sora
Sora (XOR) $ 184.46 2.73%
dent
Dent (DENT) $ 0.002350 0.84%
loom-network
Loom Network (OLD) (LOOMOLD) $ 0.042859 2.30%
nftx
NFTX (NFTX) $ 43.44 7.07%
gala
Gala (GALA) $ 0.006614 7.83%
axie-infinity
Axie Infinity (AXS) $ 3.67 1.14%
beefy-finance
Beefy.Finance (BIFI) $ 1,022.54 8.14%
swingby
Swingby (SWINGBY) $ 0.073553 10.06%
parsiq
PARSIQ (PRQ) $ 0.571439 2.47%
akropolis
Akropolis (AKRO) $ 0.016844 3.88%
nest
Nest Protocol (NEST) $ 0.010255 1.13%
stakehound-staked-ether
StakeHound Staked Ether (STETH) $ 1,879.43 0.65%
akash-network
Akash Network (AKT) $ 4.05 25.87%
cream-2
Cream (CREAM) $ 148.34 3.95%
auto
Auto (AUTO) $ 911.29 3.77%
storj
Storj (STORJ) $ 0.656712 1.25%
e-radix
e-Radix (EXRD) $ 0.137917 7.90%
hive
Hive (HIVE) $ 0.235874 1.58%
chainx
ChainX (PCX) $ 3.59 5.97%
wrapped-nxm
Wrapped NXM (WNXM) $ 53.12 0.35%
hathor
Hathor (HTR) $ 0.350935 7.80%
gemini-dollar
Gemini Dollar (GUSD) $ 0.993883 0.51%
frontier-token
Frontier (FRONT) $ 0.511888 8.17%
everid
Everest (ID) $ 0.221258 5.15%
lto-network
LTO Network (LTO) $ 0.178352 2.07%
power-ledger
Power Ledger (POWR) $ 0.137115 7.52%
livepeer
Livepeer (LPT) $ 22.07 5.92%
xdai-stake
xDAI Stake (STAKE) $ 8.73 2.11%
rari-governance-token
Rari Governance Token (RGT) $ 4.84 2.10%
cashaa
Cashaa (CAS) $ 0.021557 2.02%
energi
Energi (NRG) $ 1.72 1.81%
bytecoin
Bytecoin (BCN) $ 0.000423 2.78%
duckdaodime
DuckDaoDime (DDIM) $ 11.38 3.27%