​Bank of Japan: the digital yen must be simple

What's new? Shinichi Uchida, executive director of the Bank of Japan (BOJ), stated that the central bank's idea of the digital yen design will be determined by simplicity. He added that the Central Bank does not plan to issue CBDC now. However, this year it started the first phase of experiments with CBDC and created a group to exchange views with the private sector. This is reported by Reuters.

Article on Reuters

What does the director say? If the central bank decides to issue digital currencies, they should coexist with the private sector’s payment services, Shinichi Uchida said.

“To achieve vertical coexistence, a relatively simple central bank digital currency design is desirable for the private sector to use it as an ingredient to develop various services.”

What is the advantage? Private organizations can develop services that will allow customers to use both CBDC and payment means with one wallet, Uchida added.

World central banks have recently stepped up efforts to develop digital currencies to modernize financial systems and accelerate domestic and international payments. As previously stated, Laos has started developing a state digital currency.