October 28, 2021

Bank of Japan governor says CBDC preparation can’t wait until hour of need

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Japan is taking a measured but attentive approach to global interest in central bank digital currency issuance. In his latest remarks published on Tuesday, Bank of Japan Governor Kuroda Haruhiko noted that the institution has not changed its stance and still does not currently have a concrete plan to issue a CBDC.

However, this non-commitment does not mean inactivity on the CBDC research and development front by any means. In October 2020, Japan’s central bank pledged to begin the first of several testing phases for its own CBDC proof-of-concept. Haruhiko has now confirmed that these are due to begin this spring.

The governor underscored that, as per a Bank of International Settlements report, 86% of central banks globally are currently exploring the benefits and downsides of CBDCs. Of these, 60% are already at an experimental or proof-of-concept stage of development. Haruhiko noted:

“Central banks share the view that it is not an appropriate policy response to start considering CBDC only when the need to issue CBDC arises in the future.”

Haruhiko said that “From the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, we Title: Bank of Japan governor says CBDC preparation can’t wait until hour of need
Sourced From: cointelegraph.com/news/bank-of-japan-governor-says-cbdc-preparation-can-t-wait-until-hour-of-need
Published Date: Tue, 16 Mar 2021 12:37:47 +0000