Japan Will Have Its Own Digital Currency!

 Bank for International Settlements (BIS), in collaboration with 7 central banks, published its first joint report on the central bank's digital currency on October 9, focusing on the basic principles and key features of the CBDC.

In addition, the Bank of Japan, which is one of the members of the group, has issued a document outlining a specific approach to the CBDC from their Japanese-based perspective.

According to the BoJ report, they will begin several testing phases for the CBDC itself in 2021. This will include environmental development tests for the currency and experiments on its basic function as a payment instrument.

This is because offline use during system and network failures as well as power outages are also important for Japan as the country is often vulnerable to natural disasters such as earthquakes, tsunamis, floods, hurricanes and volcanic eruptions.

However, the report does not provide details on how they prepared for the event, although there are specific solutions to address possible electrical or network failures for Bitcoin (BTC) and other blockchain-based cryptocurrencies. For example, the development of mesh networks based on long-wave radio transmitters, and the Blockstream satellite network, which broadcasts Bitcoin transactions through space.

For everyone's information, the BIS digital currency research group was announced in January 2020, and includes central banks from Japan, Canada, the United Kingdom, Sweden, Switzerland and the European Central Bank. In addition, The Federal Stated Federal Reserve has also joined this group.