Japan Central Bank Announces Digital Yen Testing

Kataryna Kovtun July 3, 2020

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The Bank of Japan announced the start of testing the national digital currency (Digital Yen).

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According to the statement, at the first stage of testing, the bank intends to evaluate the possibility of launching the coin from a technical point of view. BoJ will consider the reliability of such an instrument and its availability to a wide range of people. In the report, the bank refers to a 2018 Nikkei research, according to which only 65% of the country’s residents have smartphones.

In addition to protecting digital yen from unauthorized access, the agency will examine the issue of its availability in emergencies. The tool should work even if there are no power sources.

During the testing of digital currency, BoJ intends to cooperate with the central banks of other countries. The agency has not yet decided on the use of the blockchain, explaining this by the insufficient bandwidth of decentralized networks.

“Both centralized and decentralized systems have their pros and cons. When it comes to the large volume of transactions in retail sales in developed countries, it is better to choose a centralized technology. In a situation where the volume of transactions is limited and reliability is the main priority, it is worth considering the decentralized type, ” — the report said.

Recall that in late May, China accelerated the development of its digital currency due to US sanctions and the consequences of the COVID-19 pandemic. Read more about it here…

A few days later a video appeared on the network converting funds to the digital yuan.

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