The Bank of Japan has no immediate plans to launch a central bank digital currency (CBDC), according to Director Kazunari Kamiyama. Speaking at the ninth CBDC Liaison Council meeting with private sector partners, Kamiyama cited Japan’s continued high cash usage as a primary factor in the decision.
His comments came ten days after the central bank released a second progress report on its digital yen pilot program, which involves seven working groups and 64 private companies through the CBDC Forum. These groups are tackling different aspects of digital currency development through both technical implementation and theoretical research.
One working group is examining how CBDCs might integrate with emerging technologies like distributed ledger technology (DLT). As part of this exploration, researchers considered deploying a CBDC on a public blockchain. However, they concluded this approach isn’t currently viable due to scalability limitations, privacy concerns and governance challenges.
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