Yesterday the Bank of Japan (BoJ) published a research paper on central bank digital currency (CBDC). As with previous papers, the Bank explored a specific topic, in this case, the potential offline use of a digital yen.
Although it’s a research paper, the Bank recognizes there will be a growing need for a digital currency with the steady decline in the use of cash. However, in Japan, four out of five retail transactions still use cash.
The Bank considers two critical features of a CBDC are universal access and resilience. That means using the digital yen without electricity, especially given Japan’s recent earthquakes and power outages.
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