Bank of Japan Governor Stresses Need to Prepare for Digital Currency Launch

Haruhiko Kuroda, the Governor of the Bank of Japan (BOJ), has said the central bank must “prepare thoroughly” for the possible future need to issue a digital yen.

The BOJ has no plans at present for a central bank digital currency (CBDC) launch, but Kuroda believes it must be prepared for a change in circumstances that could necessitate one.

“From the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, it’s important to prepare thoroughly to respond to changes in circumstances in an appropriate manner,” he said at a seminar.

Neighboring China’s plan to issue its digital yuan is firmly established, with the project in the public trial stages.

South Korea is working on a digital coin too, having published research for a CBDC project and planning tests later this year. The BOJ will begin experiments later this spring.