Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Currencies  >  Euro / Japanese Yen (EUR/JPY)    EURJPY   

EURO / JAPANESE YEN (EUR/JPY)

SummaryQuotesChartsNews 
SummaryMost relevantAll NewsMarketScreener Strategies

BOJ to begin experimenting with digital currency next year

10/09/2020 | 07:57am EST
A man wearing a protective mask walks past the headquarters of Bank of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo

TOKYO (Reuters) - The Bank of Japan said on Friday it would begin experimenting next year on how to operate its own digital currency, joining efforts by other central banks to catch up to rapid private-sector innovation.

The move came in tandem with an announcement by a group of seven major central banks, including the BOJ, on what they see as core features of a central bank digital currency (CBDC) such as resilience and a clear legal framework.

It also falls in line with new Japanese Prime Minister Yoshihide Suga's focus on promoting digitalisation and administrative reform to boost the country's competitiveness.

In a report laying out its approach on CBDC, the BOJ said it will conduct a first phase of experiments on basic functions core to CBDCs, such as issuance and distribution, early in the fiscal year beginning in April 2021.

The experiments will be part of the BOJ's efforts to look more closely into how it can issue general-purpose CBDCs, intended to be used widely among the general public including companies and households.

Such CBDCs will complement, not replace, cash and focus on making payment and settlement systems more convenient, it said.

The BOJ also plans to have financial institutions and other private entities serve as intermediaries between the central bank and end users, rather than have companies and households hold deposits directly with the BOJ, the report said.

"While the BOJ currently has no plan to issue CBDC ... it's important to prepare thoroughly to respond to changes in circumstances," the report said.

In the second phase of experiments, the BOJ will look at the potential design of CBDCs such as whether it should set a limit on the amount issued and pay a remuneration on deposits.

As the final step before issuance, the BOJ will launch a pilot programme involving private firms and households, it said.

The BOJ added it would be desirable for the CBDC to be used not only for domestic but cross-border payments.

Japan has been cautious about moving too quickly on digital currencies given the social disruptions it could cause in a country that has the world's most cash-loving population.

But China's steady progress toward issuing digital currency has prompted the government to reconsider, and pledge in this year's policy platform to look more closely at the idea.

The BOJ's recent efforts to catch up include creating a new team focusing on issuing digital currency and conducting joint research with other central banks.

(Reporting by Leika Kihara; editing by Simon Cameron-Moore)

By Leika Kihara


© Reuters 2020
All news about EURO / JAPANESE YEN (EUR/JPY)
11/27Dollar edges lower in thin trade, set for weekly loss
RE
11/26ANALYSIS : With new bank aid, BOJ makes stealthy retreat from negative rates
RE
11/26FACTBOX : BOJ tiptoes into industrial reform with regional bank aid
RE
11/25Stocks hit record high as Biden, vaccine lift investor outlook
RE
11/24Stocks hit record high as Biden, vaccine lift global prospects
RE
11/23BOJ's Kuroda says no immediate need to overhaul policy framework
RE
11/23Soybeans fall for first time in eight sessions
RE
11/23Yen on slippery ground as Yellen, Trump transition news boost risk appetite
RE
11/23Vaccine developments keep dollar down; Aussie and Kiwi strengthen
RE
11/20Dollar gains in tug-of-war between vaccine, rising virus cases
RE
More news
Chart EURO / JAPANESE YEN (EUR/JPY)
Duration : Period :
Euro / Japanese Yen (EUR/JPY) Technical Analysis Chart | EURJPY | MarketScreener
Technical analysis trends EURO / JAPANESE YEN (EUR/JPY)
Short TermMid-TermLong Term
TrendsBullishNeutralBullish