The Japan Credit Bureau (JCB) is keen to start its central bank digital currency (CBDC) infrastructure testing. It will prepare the payments platform for a national CBDC which is being tested by the Bank of Japan. The project will come under JCBD.
It will adjust the JCB’s existing credit card infrastructure for CBDC payments. IDEMIA, the France-based provider of facial recognition technology, and Malaysian Softspace will team up with the Japan Credit Bureau for this ambitious project. It’s working towards three major directions, with the first being a touch payment solution, the second being an issuance and provision of plastic cards for CBDC, and the third, a simulation of the working CBDC environment. The JCB will adjust the mobile payment tools and QR codes in the later stages of testing. It also intends to develop a payment solution by 2022-end and initiate demonstration experiments at actual stores by March end of 2023.
Moreover, the BoJ outlined a three-phased trial plan for its CBDC in October 2020. The second phase of the trials will test the technical aspects of the issuance of the digital yen. It will start this year. The digital yen, as per the BoJ governor, could be introduced by 2026. It should be noted that the decision will not be made by the Japanese central bank alone. And there is no certainty about the project launch or plans for its implementation. The former head of BoJ’s financial settlement department had advised against using the digital yen as part of Japan’s monetary policy.