Japan Takes Next Step with Digital Yen Pilot Project Following Second Successful Trial
Japan disclosed the results of the second phase of the digital yen.
The CBDC pilot project commenced in April 2022.
The one-year-long pilot concluded in March 2023.
The Bank of Japan (BOJ) has unveiled the outcomes of the second phase of its proof-of-concept (PoC) experiment for a central bank digital currency (CBDC), affirming that the CBDC pilot project was successfully launched in April as planned.
The second phase, spanning from April 2022 to March 2023, focused on exploring additional functionalities to complement the core ledger functions examined in the initial year-long experiment.
Japan digital yen completes second successful trial
According to the recently published BOJ report, the second phase of the PoC assessed the technology required to implement upper limits on CBDC holdings. These limits were considered crucial “safeguards” to maintain the stability of the financial system in the event of a sudden shift from traditional bank accounts to the CBDC.
The testing also encompassed scenarios where a single user possessed multiple accounts with various intermediaries. Additionally, the report highlighted the examination of user convenience in terms of initiating and scheduling payments using the CBDC.
Behind the scenes, the Bank of Japan conducted experiments involving the database language and ledger design, exploring ways to enhance functionality.
Today’s #Fintech Digest does a deep dive into the Bank of Japan central bank digital currency (#CBDC) proof-of-concept (PoC) work, the results of which were published today. https://t.co/2Iclpl8HsW pic.twitter.com/8wyRhiI2vE
— John Kiff (@Kiffmeister) May 29, 2023
During the experiment, the scenario considered the involvement of 100,000 users and five intermediaries. Various transaction loads were tested, including 500 and 3,000 transactions per second, with a focus on assessing scalability and the system’s ability to handle increased demands.
The proof-of-concept (PoC) endeavors were deemed successful in achieving their intended objectives, prompting the Bank of Japan (BOJ) to proceed with its planned CBDC pilot project. The upcoming pilot phase will center on examining the end-to-end process flow and establishing further connections with external systems. The report emphasized the importance of these activities in advancing the development and implementation of the CBDC.
Filed under: Bitcoin - @ May 29, 2023 7:23 pm