Bank of Japan Seeks ‘Plain, Easy-to-Cook’ CBDC Model

·1 min read

The Bank of Japan (BoJ) would try to develop a central bank digital currency (CBDC) that can easily coexist with private payment methods, Executive Director Shinichi Uchida said in a speech.

  • Seeking “vertical coexistence,” with other payment methods used by the public, a CBDC should be made of “relatively plan, easy-to-cook material,” Shinichi Uchida said on Friday.

  • The central bank official cited an example in which a CBDC could be used within a digital wallet provided by a private company.

  • “There are various options, but the Bank of Japan would like to work with you to draw an overall picture of the payment system when the CBDC exists,” he said.

  • The director said the priority of the central bank is that the addition of a CBDC should enable competition between private payment systems providers, while also being universally accessible by the public.

  • This position was also stressed in a statement, which was released on Wednesday, by the finance officials of the G7.

  • Uchida added in his speech that the BoJ has “no plans to issue a CBDC at this time,” but that not issuing one would still leave the central bank with the task of building a payment system fit for the future.

Read more: CBDC Impact on Banking Sector Could Be Manageable: New BIS Report

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