The Bank of Japan (BoJ) has planned to test the viability of a digital yen, Nikkei reported on November 23, 2022.
Bank of Japan, which is the island nation’s central bank, will begin working with three of the country’s largest banks and other organisations in the spring of 2023 on a central bank digital currency (CBDC).
It will also study whether such a CBDC can function during natural catastrophes and in places without any Internet connection.
The “three megabanks” of Japan are typically understood to be Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc., and Mizuho Financial Group Inc., although the banks’ names were omitted from the study.
Last year, BoJ added its name to the increasing list of central banks investigating CBDCs by creating a test environment for a digital yen and investigating fundamental operations, including issuance, distribution, and redemption.