According to a recent report by Decrypt, the Bank of Japan has officially begun the first phase of the implementation of a Central Bank Digital Currency (CBDC) which is said to take about a year-long study and research.
This first phase has been termed by the Bank of Japan as the ‘Proof of Concept (PoC)’ which will allow the bank to design a prototype of a complete cryptocurrency system that will serve “as a payment instrument such as issuance, distribution, and redemption”.
As of now, the Bank of Japan plans to run the first phase during this year and then follow it up with numerous other phases before the bank launches a CBDC.
With Japan’s plans set in motion, it is clear that China will soon counter Japan’s CBDC by introducing the digital Yuan titled ‘Digital Currency, Electronic Payment (DCEP)’. Currently, almost 6 Chinese government-owned banks have started the procedure for opening digital wallet accounts for the residents of Shanghai and Beijing.
Moreover, the UK’s Bank of England and the European Central Bank have also immersed themselves in the cryptocurrency ecosystem. It is only a matter of time when other countries get a piece of the same pie and try to get ahead in this digital currency environment.