The Bank of Japan will model its CBDC trials on Sweden’s steady approach, rather than China’s huge pilot programs. Officials also stated that a decision on the issuing of a CBDC would not be made until 2026.
The Bank of Japan has stated that it will structure its central bank digital currency (CBDC) after Sweden’s, rather than China’s. In an interview, Kazushige Kamiyama, the head of the bank’s payment system department, provided the information.
Instead of launching huge pilot programs straight now, the CBDC will be launched in small but steady phases. Sweden’s gradual extension of experimentation, according to Kamiyama, is a better fit for Japan, adding that:
“The framework and design of the central bank digital currency needs to be decided as a part of an overall settlement system for the future.”
He also mentioned that studies undertaken with the assistance of other central banks, such as the Federal Reserve of the United States and the European Central Bank, would help to reduce any concerns associated with bringing different CBDCs together. The Bank of Japan is concerned about the compatibility of different CBDCs.
The Bank of Japan, on the other hand, has not committed to launching a CBDC; it is still in the early contemplation stage. Sweden is also just looking at the prospects of a CBDC and isn’t sure if it will ever issue one. The Bank of Japan’s governor, Haruhiko Kuroda, has stated that a decision on the issuance of a CBDC will not be taken until 2026.
CBDCs are being examined in around 90 nations, though the number is likely to be greater. Governments are eager to take advantage of the benefits and replace their outdated banking systems.
Although China is the most apparent of these governments, this does not mean that other nations are lagging behind. In reality, several countries have accelerated their CBDC initiatives in recent months, and now everyone from India to the United Kingdom is working on it.
The US has also stated that it will explore CBDCs, with the Federal Reserve stating that it wants to strengthen current systems. This, too, is far from certain, but it appears to be becoming more likely as time goes on.
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