Bank of Japan Forms Committee to Coordinate CBDC Efforts

The Bank of Japan (BOJ) said it has launched a liaison and coordination committee as it experiments with a central bank digital currency (CBDC).

In a statement, the BOJ said the committee's first meeting was being held on Friday. It stressed there are no plans to issue a CBDC at present but the bank will begin with an “initial experiment” or proof of concept phase, which is scheduled to begin in April.

While the Bank currently has no plan to issue central bank digital currency (CBDC), from the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, the Bank will prepare thoroughly, including implementing experiments, to respond to changes in circumstances in an appropriate manner. In the course of CBDC exploration, the Bank considers it important to apply the knowledge of various stakeholders such as the private sector, experts, and relevant public authorities.Statement from the Liaison and Coordination Committee on Central Bank Digital CurrencyBank of Japan

Through the newly launched committee, the BOJ said it will update the private sector and policymakers and seek input on the next steps.

Read more: Bank of Japan Governor Stresses Need to Prepare for Digital Currency Launch

In contrast, China’s plan to issue its own digital yuan has been firmly established, with the project in the public trial stages.