China and Japan push ahead with central bank digital currencies

China and Japan push ahead with central bank digital currencies

Asia’s two largest economies take further steps to implement their respective CBCDs.

Major Asian powers China and Japan are pushing ahead with the development of their central bank digital currencies (CBDCs) at a rapid pace.

As per an announcement by the Bank of Japan on 26 March, the Japanese central bank has set up a coordination committee for its planned digital currency, through which Bitcoin Trader software both business and government agencies will be involved in its implementation:

„Through this committee, the central bank disseminates information and updates on the development status of the feasibility study to the business community and government agencies, and seeks their opinions to facilitate smooth implementation.“

The announcement further states that the central bank has been planning a pilot project for its own digital currency since October 2020, with phase 1 set to begin next month.

Meanwhile, Chinese state news agency Sina has reported that six major state-owned banks are testing wallet services for the digital renminbi. Customers of the banks in question can apply to participate in the test, whereupon they will be able to use wallets that are subordinate to the RMB wallets of the respective bank.

However, the central banks check each application individually

Activated participants then receive a short message containing all further steps for setting up the wallets by scanning a specific QR code. The customer wallets initially have a transaction limit of 1,000 yuan per day, but this upper limit is to be raised later. The customer wallets can also be linked to bank accounts from other participating banks.

The six participating banks are Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, Postal Savings Bank of China and Industrial and Commercial Bank of China.

China has already implemented a CBDC pilot in the major cities of Beijing, Shenzhen, Suzhou and Chengdu.