Japan Cancels CBDC Project, Citing Lack Of Interest From The Public

The Bank of Japan (BoJ) has announced that it is canceling its central bank digital currency (CBDC) project.

Japan Cancels CBDC Project, Citing Lack of Interest from the Public

The Bank of Japan (BoJ) has announced the cancelation of its central bank digital currency (CBDC) project due to lack of interest from the public.

Japan Scraps CBDC Plans 

The BOJ, which began testing the technical viability of issuing a CBDC in April 2021, has concluded that it would not be technically feasible for the government to release a yen-backed CBDC at the present time.

Sponsored

The Central Bank of Japan had completed its first and second phases of CBDC testing, but has since elected to forgo the third phase, which would have seen the release of a pilot program for participation by private businesses and end-users.

Cash Over Digital Currency in Japan

According to reports, the BOJ scrapped its CBDC program due to a perceived lack of interest from Japanese citizens. The public did not deem the use of a CBDC attractive enough to consider because of the high adoption of digital payments in the country.

The central bank revealed that much of the country’s population already has widespread access to low-cost, efficient internet banking services and digital payment tools. 

Japan has one of the lowest retail deposit interest rates at 0.001%, reinforced by its low volatility currency. In light of this, the government believes that crypto will find it difficult to replace cash as the go-to medium for transactions among Japanese citizens.

On the Flipside

  • China has given the go ahead for its CBDC launch, with the People’s Bank of China (PBoC) gradually onboarding more provinces and cities to the CBDC platform.

Why You Should Care

The widespread access to digital payments and payment portals has led to Japanese citizens holding a high preference towards cash over other forms of exchange, especially due to the benefits offered by such services.

Read more about the progress of China’s CBDC project in:

China to Airdrop $30 Million of Digital Yuan to Revive Locked Down Economy

Looking for information on other countries that are also exploring CBDCs? Read:

Qatar Central Bank to Explore CBDC Options

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tags
Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia