The Bank of Japan (BOJ) has completed the second phase of its pilot of a central bank digital currency and is now moving ahead with its pilot project.
The Bank of Japan (BOJ) has successfully completed the second phase of its study of the potential of a central bank digital currency (CBDC), according to a recent report. This year-round project, which runs from April 2022 to March 2023, is enhanced and built on the foundational ledger functionality explored in Phase 1.
the a report He points out that this second phase focused on techniques to place caps on central bank digital currency holdings, which the Bank of Japan views as a crucial step toward ensuring financial stability.
This is in anticipation of any sudden shifts from traditional banking services to the use of central bank currencies. This consideration extends to scenarios where a single user maintains multiple accounts across different brokers.
In addition, user-friendly procedures for initiating and scheduling payments were evaluated. Technological advances in database languages and ledger designs are also explored, including experiments on an innovative flexible-value token model.
To accommodate multiple transactions from a single account more efficiently, a coordination system has been introduced.
A model of 100,000 virtual users and five moderators was used in the experiment, which tested download capacities from 500 to 3,000 transactions per second.
While not inclusive directedInherently privacy concerns were included, and offline payments were evaluated, particularly in terms of fraud prevention and privacy preservation.
(embed) https://www.youtube.com/watch?v=4NiiextLQsM (/embed)
Business operation centers have achieved their goals, according to the Bank of Japan, paving the way for the timely launch of the CBD pilot project, which will further study process flows and integration with external systems. Interestingly, the report confirms that the Japanese public will be instrumental in the decision-making process regarding the issuance of a central bank digital currency.
To facilitate input from the private sector, a CBD Forum will be established. The Bank of Japan aims to reach a final decision on launching a central bank digital currency by 2026.