Japan launches digital yen pilot project after successful proof-of-concept

The Bank of Japan (BOJ) has announced the findings of the second phase of its central bank digital currency (CBDC) proof-of-concept (PoC) experiment. The results confirmed that the CBDC pilot project launched on schedule in April. The second-phase PoC ran for a year, from April 2022 to March 2023, and tested functions to complement the basic ledger functions that were tested in the first yearlong experiment.

The BOJ report revealed that the second phase tested technology to implement upper limits on CBDC holdings as “safeguards ensuring the stability of the financial system” in case of a sudden shift from bank accounts to the CBDC. The experiment also examined user convenience in initiating and scheduling payments.

Experiments were also made with the database language and ledger design, and a flexible-value token model was trialed. An orchestration system was implemented to handle multiple transactions with the same account more quickly.

The experiment assumed 100,000 users with five intermediaries and looked at loads of 500 and 3,000 transactions per second, with a discussion of increasing scalability. Privacy was considered throughout but not discussed at length. Offline payments were discussed in the context of fraud prevention and preservation of privacy.

The PoCs were declared successful in achieving their desired results, and the report confirmed that the BOJ had moved on to its scheduled CBDC pilot project. The pilot will examine “end-to-end process flow” and further connections with external systems.

A CBDC Forum will be created to gain insight from private businesses. The BOJ has stated that it will make a final decision on the issuance of a CBDC by 2026.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Justin Sun unstakes 20,000 ETH from Lido Finance. What's happening?

Justin Sun, the co-founder of Tron, has successfully transferred 20,000 Ethereum (ETH) from Lido Finance to Binance u...


Humorous and Professional Announcement from HTX Exchange

HTX, a popular digital asset exchange, has announced the resumption of deposit and withdrawal services for top crypto...


New name HTX raises eyebrows in Huobi community

Huobi is excitedly marking its impressive 10th anniversary by embarking on a bold marketing campaign – a rebranding i...


Shady Transactions Raise Eyebrows as $110 Million Evaporates from HECO Bridge and HTX Exchange – What in the Crypto World is Happening?

Recent blockchain breaches on the HECO bridge and HTX platform have been reported by security firms, resulting in an ...


🚀 Liquid Restaking Tokens: The Hype, The Risks, and The Future of Ethereum DeFi! 🌟

Discover the latest developments in the world of blockchain technology with our weekly newsletter. This week, join Sa...


EigenLayer's Sreeram Kannan on Ethereum's risky 'restaking' trend

In an exciting interview, Sreeram Kannan, the visionary founder of EigenLayer and a trailblazer in the field of resta...