Bank of Japan (BoJ) has decided to be cautious in launching its Central Bank Digital Currency (CBDC). This CBDC is being called the Digital Yen. The decision to launch the digital yen is expected to be made in the next few years. In its research on CBDCs, Japan seeks to ensure that it fits into the country’s financial and economic infrastructure.
This month the BoJ entered its second round of research on the digital yen. Kazushige Kamiyama, Head of Payments Department at BoJ, said a trial for the CBDC will be launched soon. of CryptoPotato Report Kamiyama is quoted in the report as saying that emerging economies may launch CBDCs sooner as it will help them deal with weakness in the financial network. Sweden is also doing a technology-related research regarding CBDC. Unlike Japan, Sweden has not decided on launching a CBDC.
Earlier this year China tested its digital yuan during the Winter Olympics. CBDCs are regulated by central banks and are similar to cryptocurrencies. It is built on a blockchain network. This makes transactions centralized and traceable. Transactions involving cryptocurrencies are decentralised.
In recent times some countries have started work on plans to launch CBDCs. Like cryptocurrencies, CBDCs do not have volatility and other risks. The Federal Reserve is exploring the possibility of launching a CBDC in the US. Russia has started testing its own CBDC called the Digital Ruble. Caribbean Countries Jamaica The digital currency of Jam-Dex is launching soon and its initial one lakh users will get the benefit of additional $ 16. The government of Jamaica has made a strategy to give incentives to increase the popularity of this digital currency among the people. Its testing was completed last year. All Jamaicans will have access to Jam-Dex through a wallet provider or bank. All Jamaicans with a bank account will be able to receive the Jam-Dex digital wallet automatically.