The first phase of experimenting with a central bank digital currency (CBDC) will begin in April, and the BOJ aims to draw on the private sector for support and expertise.
The central bank will begin feasibility tests from April on the core functions and features required for CBDC. If necessary, the BOJ would then move ahead to a pilot programme that involves private payment service providers and end users, Uchida said.
Stressing the need to prepare, Uchida said that a CBDC could one day play a key role in global payments and settlements.
The committee consists of BOJ, Ministry of Finance and Financial Services Agency executives, as well as lobbyists from the banking and finance sector. Its next meeting is scheduled around September or October.
The BOJ last October announced plans to begin experimenting on how to operate its own digital currency, joining efforts by other central banks to catch up to the rapid innovation achieved by the private-sector.
(Reporting by Leika Kihara; Editing by Chang-Ran Kim & Simon Cameron-Moore)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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