Japan plans to issue digital Yen. A pilot program is ready

Japan decided to try releasing the digital Yen. The BOJ announced today that it would start a pilot program in April 2023. The central bank wants to test the currency before launching it full-scale. More and more countries are contemplating issuing central bank digital currencies, also called CBDC. China already did it, and thus far, everything has worked out splendidly.

The Bank of Japan has been experimenting for the last two years. The officials argued whether it was a good idea to issue a CBDC. However, it seems, the bank is ready to move forward at last. The BOJ’s current governor Haruhiko Kuroda, will leave his post in April. Academic Kazuo Ueda will likely succeed him.

BOJ Executive Director Shinichi Uchida noted that the bank hopes this pilot program will lead to improved designs. The officials will discuss private businesses to see what can be changed for the best.

Moreover, the Bank of Japan will start making simulated transactions with various private entities under the pilot program. It wants to see how the currency will work in the test environment. The end game is to make a report to show CBDC’s conduct if the Japanese government decides to issue a digital Yen.

Kazushige Kamiyama, the head of the BOJ’s CBDC development department, said the pilot program will last several years. It will also involve discussions with commercial banks, as well as non-bank settlement firms.

British customer spending increased in January 

In the United Kingdom, people increased their shopping last month, surprising the markets. Despite that, analysts offer gloomy predictions. Official data showed today that customers are mainly relying on discount retailers as inflation remains high.

Consequently, when sales end, demand will likely weaken again. Thus far, sales volumes jumped by 0.5% in January compared to December’s report. Analysts expected it to drop by 0.3%. The decline could still occur in the coming months.