The Bank of Japan (BoJ) will work with a number of unnamed financial institutions to stress-test a central bank digital currency (CBDC).
The functionality of deposits and withdrawals, as well as what happens when there is no internet connection, will be tested. In the spring of 2023, the central bank will begin collaborating with private banks and other organizations.
In 2026, the decision to formally adopt a digital yen will be made.
The BoJ began trials in April of last year to examine the technological viability of a CBDC.
The BoJ joined a growing list of central banks worldwide examining CBDCs by creating a test environment for a digital yen and investigating fundamental operations such as spreading distribution and redemption.