The Bank of Japan announced today in a statement that it has launched Proof of Concept digital currency. The country wants to complete the first phase of its tests in 2022 and after the second phase to move to a pilot version of the system.
The Bank of Japan, in continuation of its plan in early 2021 for the initial preparations for testing the technical capabilities of a digital currency, has now launched the first test phase of these cryptocurrencies. has started. In this phase, a test space is to be developed for the Central Bank Digital Currency System (CDBC) and basic tests will be performed on the payment, issuance, distribution and redemption of these cryptocurrencies.
The first phase of the CDBC is expected to be completed in March 2022, according to a statement released today. The Bank of Japan initially said it wanted to begin testing the CDBC in October 2021. The bank stressed that they have no plans to offer CBDCs to ensure the overall stability and efficiency of digital currency-based payment and settlement systems, but that they still need to be properly prepared to change the situation.
According to the main CBDC test schedule, the Bank of Japan is expected to launch a pilot version of the cryptocurrency after the completion of the second phase of the test. This version will include a payment server and users can use it. In the second phase, we will see the implementation of the functions developed in the experimental environment of the first phase.
The Bank of Japan recently announced the formation of a committee called the “Relations and Coordination Committee” to work with the private sector on a CBDC pilot.
Proof is the concept of an example used to prove the existence or feasibility of something. The goal is to prove the concept of testing existing hardware and software to use a new idea or technology.