In April, the Bank of Japan entered the pilot phase of its central bank digital currency (CBDC) work. Today it published the results of its second phase of the digital yen proof of concept work that ended in March.
The central bank’s experiments targeted a wide range of topics. Two of the most interesting aspects of its work are the comparison between account-based and token-based CBDC and how to manage holding limits if a user has more than one account.
It also explored other added value applications, such as a ‘swing’ function to sweep excess balances into bank accounts as well as scheduled and batched payments. And it investigated integration with point of sale systems and DLTs for tokenized asset settlement.
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