According to a recent article by Decrypt, the Bank of Japan has officially started the first phase of the introduction of a Central Bank Digital Currency (CBDC), which is expected to take a year of research and analysis.
The Bank of Japan has designated the first phase as a “Proof of Concept (PoC)” phase, which will enable the bank to design a prototype of a complete cryptocurrency system that will be used “as a payment instrument, including issuance, delivery, and redemption.”
The Bank of Japan currently plans to operate the first phase this year, followed by several other phases before launching a CBDC.
With Japan’s plans in motion, it’s clear that China will soon respond to Japan’s CBDC by launching the ‘Digital Currency, Electronic Payment (DCEP)’ digital Yuan. Almost six Chinese government-owned banks have begun the process of opening digital wallet accounts for Shanghai and Beijing residents.
