Influenced By Cryptocurrency, Japan Is Making Their Own Digital Money

JAKARTA - The Bank of Japan (BoJ) plans to issue their own virtual money. The Japanese central bank is collaborating with a number of other central banks aimed at stemming the cryptocurrency that is currently popular.

The Bank of Japan will begin trials until 2022. They are testing the feasibility of digital money issuance, distribution, and exchange mechanisms, as compiled from Reuters on Tuesday, April 6.

After the test is complete, they will continue with the next experiment, which is to carry out more detailed functional research, one of which is the determination of limits on the amount of CBDC digital money that individuals can have.

The Japanese central bank also plans to release a pilot program that will be carried out with payment companies. This was disclosed by the Executive Director of the Bank of Japan, Shinichi Uchida some time ago.

"While there is no change in the BoJ's stance, there are currently no plans to publish a CBDC, we believe starting the experiment at this stage is a necessary step", Uchida said.

Currently, the world's central banks are designing digital money to modernize the financial system and stem crypto money, and maximize transactions more quickly.

The BoJ is accelerating its efforts to catch up. Previously, they had announced the trial in October 2021. The BoJ is currently conducting trials regarding the use of its digital money.