It looks like Japan’s central bank is feeling risky! It has pulled the trigger on experiments that will determine how viable it will be to issue its own digital currency. The first trials, which are designed to assess the feasibility of all the logistics surrounding the central bank digital currency nicknamed CBDC, will continue until March 2022. Following this, the Bank of Japan (BOJ) will move on to a more judicious second phase.
BOJ must be keen to develop its own digital currencies because, at the moment, cryptocurrencies are highly volatile and largely unregulated. Though, it’s got to move fast in order to catch up with the private sector and all the up-and-coming Crypto/FinTech players.