More than 30 accredited financial institutions based in Japan will participate in a local experiment to test the usefulness of a digital yen for institutional operations, as reported by the Reuters news agency in a publication.
The group made up of banks, brokerage firms, public sector companies, representatives of the telecommunications ecosystem and other retail entities will work hand in hand to ensure cooperation between the central bank and the private sector and make the initiative successful.
Hiromi Yamaoka, president of the group of institutions that will participate in the experiment, assured that the intention is to streamline and make the processes more practical, because currently the country does not have digital payment platforms that meet the expectations of the demanding population.
“What we want to do is create a framework that can make various platforms compatible with each other… The fundamental, and more delicate question is how to ensure that private deposits and a CBDC coexist. We don’t want money to rush out of private deposits, and it wouldn’t make sense to issue a CBDC if it isn’t widely used,” Yamaoka reported.
Among the innovative ideas, the group awaits the expectation of creating a tool that allows generating greater traction, as in the case of PayPal. For this reason we speak of a two-layer currency, which “will not conflict with the instruments of existing payments… It is expected that this initiative can improve interoperability between these platforms with the creation of bridges”, the group said in a statement.