Japan’s Central Bank Digests Digital Yen Integration with Emerging Tech

The Bank of Japan has released its second progress report on its Digital Yen pilot program, outlining the exploration of integrating CBDCs with cutting-edge technologies like blockchain. A working group is examining how DLT can enhance CBDC functionality, considering potential deployment on public blockchains. While currently deemed unfeasible, future developments may explore more controlled Layer 2 blockchain solutions. Notably, shortly after the report’s release, Kazushige Kamiyama, an executive member of the Bank of Japan, stated that a central bank digital currency is not planned for immediate issuance.