📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Kuroda says BOJ needs to be ready to issue digital yen

Published 03/28/2023, 12:50 AM
Updated 03/28/2023, 01:21 AM
© Reuters. FILE PHOTO: A man walks in front of the headquarters of Bank of Japan in Tokyo, Japan, January 18, 2023.   REUTERS/Issei Kato

By Leika Kihara

TOKYO (Reuters) - The Bank of Japan must be ready to issue central bank digital currencies (CBDC) that coexist with various other forms of money to offer the public a safe digital payment system, its governor Haruhiko Kuroda said on Tuesday.

The central bank will start a pilot programme in April to test the use of a digital yen, joining a growing number of countries seeking to catch up with front-runner China in launching a CBDC.

"Ensuring the coexistence of CBDC with various other forms of money ... is something that we need to and will in fact achieve in the future," Kuroda said in a speech delivered to a seminar on financial technology.

© Reuters. FILE PHOTO: A man walks in front of the headquarters of Bank of Japan in Tokyo, Japan, January 18, 2023.   REUTERS/Issei Kato

"There are various options lying before us in terms of how and when to carry this out. But it's our duty as a central bank to prepare ourselves to respond flexibly to any change in circumstances," he said.

The BOJ has said the pilot programme, which will follow two years of experiments it had been conducting, will help it be ready in case the government decides to issue a digital yen.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.