Bank of Japan to Carry Out Testing Phase for Its CBDC in 2021

By Mary T. | October 12, 2020

The Bank for International Settlements (BIS) – with alliance with 7 different banks – reportedly finalized the publishing of its first CBDC-focused report. 

Specifically, the BIS-written report reportedly has a primary focus on the foundational principles and core features of CBDCs. 

The Bank of Japan – one of seven associated banking entities – also reportedly revealed a document, providing details of its own particular take on CBDCs, from the view of a Japan-centered perspective. 

Per the BoJ report, the first of many testing phases for its self-developed CBDC will reportedly be carried out within the following year. This reportedly covers building a test environment servicing the currency, as well as experiments on its basement features, to operate as a form of payment instrument. 

“Offline use in times of system and network failures as well as electrical outages is also important for Japan, given the frequent occurrence of natural disasters.” One of the core functions of the CBDC reportedly needed to be resilience in the face of infrastructure disrupted by forces in Majeure. 

Because of its geological nature, Japan reportedly has to deal with numerous types of natural disasters, including earthquakes, tsunamis, floods, typhoons, cyclones and volcanic eruptions.

Though details of how the development can assist should said events occur, solutions to resolve issues related to electric or network failures for Bitcoin and different types of blockchain-powered digital coins may reportedly be available. 

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