Economy

Panel Formed to Discuss Central Bank Digital Currency

Yomiuri Shimbun file photo
The Finance Ministry’s headquarters building in Tokyo.

Jiji Press

17:00 JST, April 15, 2023

TOKYO (Jiji Press) — The Finance Ministry announced Friday the creation of a new advisory panel to discuss challenges a central bank digital currency (CBDC) would face.

The panel is led by Noriyuki Yanagawa, professor at the University of Tokyo’s graduate school, and comprises experts such as academics and think tank researchers.

It will hold its first meeting on April 21 and issue a report as early as this year that will pave the way for designing a system for a CBDC in the future.

The Bank of Japan and the Financial Services Agency will attend the meetings as observers.

CBDCs are expected to function as a means of payment alongside cash. The central bank has no plans at present to issue a CBDC.

In preparation for considering actually issuing CBDCs, the panel will discuss challenges such as the division of roles for CBDC, cash and private-sector electronic money, the handling of user information and measures to prevent money laundering.

The BOJ has conducted tests regarding CBDCs over the past two years, checking the technical feasibility of linking its system with external systems.