CBDC pilot experiment
In a speech on the 28th, Bank of Japan Governor Haruhiko Kuroda referred to a central bank-issued digital currency (CBDC), saying, “We have to realize it in the future, and I think it will.” He expressed his opinion.
Since the spring of 2021, the Bank of Japan has been conducting step-by-step “technical verification” of general-use CBDCs in line with the “Policy of the Bank of Japan on Central Bank Digital Currencies” announced in October 2020. Based on the results, we will move to a pilot experiment from April.
Governor Kuroda explained about the pilot test, saying, “Our policy is to make full use of the useful technologies and knowledge of private business operators involved in retail payments and related technologies.” He said that there could be “many options” regarding when and how to implement a CBDC, but added that it was “the responsibility of the central bank” to prepare for all possible options.

Source: Bank of Japan

According to the explanatory material released on March 16, in the pilot experiment, the Bank of Japan will build an experimental system that integrates everything from the central system to the intermediary network, intermediary system, and endpoint devices.
Under the newly established CBDC Forum, participants will be solicited from among private business operators to discuss and study a wide range of issues and countermeasures for connecting with external systems.

What are CBDCs
An abbreviation for “Central Bank Digital Currency”, it refers to a digitized currency issued by the central bank of each country or region. The big difference from crypto assets (virtual currency) is that CBDC is a legal tender.
Cryptocurrency Glossary

connection: What is Central Bank Digital Currency (CBDC) | Differences from Bitcoin and Main Advantages
Three evolutions of payment systems
In line with the theme of the conference “FIN/SUM 2023” that he attended that day, “Fintech, the era of ‘Thin individuals’,” Kuroda made three proposals regarding payment services, which are rapidly evolving. pointed out the trend.
Kuroda first pointed out that unbundling (separating) of services and functions that have been provided in an integrated manner is progressing. Regarding stablecoins distributed on permissionless blockchains, he separates “(conventional) payment functions, the function of issuing liabilities as settlement assets, and the function of recording the attribution of settlement assets.” analyzed.
Next, Governor Kuroda pointed out that technological progress has simplified the debt conversion mechanism. Attempts to utilize stablecoins and CBDC for cross-border transactions are based on the idea of ​​streamlining the conventional correspondent banking system.
The third is the evolution of platforms for economic activities. In particular, payment methods on the Internet are becoming more and more diversified. Kuroda quoted Gavin Wood’s Web3 Foundation’s definition of a next-generation internet: a decentralized and fair internet where users can control their data, identity and destiny. .

How these ideas will develop in reality and what economic activities will look like based on them are matters for the future yet to be seen. It is thought that it is necessary to be aware of how the place where the event is held will evolve in the future.

Governor Kuroda pointed out that various forms of private money, including electronic money and stablecoins, will continue to coexist. Under such circumstances, central bank money such as cash and current account deposits at the central bank is a commodity that embodies the measure of value, and will play a central role in financial intermediation.

What is Web3
The current centralized web is defined as Web 2.0, and refers to an attempt to realize a non-centralized network using blockchain. A typical feature is the use case of decentralized networks such as blockchain, such as access to dApps using virtual currency wallets.
Cryptocurrency Glossary

connection: Web3 Large Conference “WebX” Sponsored by CoinPost, Held at Tokyo International Forum
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