There used to be a time when countries from all over the world wanted to take the lead with the largest reserve currency in the world. For several decades, the United States of America has been at the top for having the larges currency reserve in the world. This is the reason why trades all over the world are conducted and calculated in dollars.
Ever since the beginning of the year 2020, things have started changing when it comes to currency reserves. Now the race is no longer among countries trying to gain prowess in the fiat currency sector but digital currencies.
This is the reason why countries with the strongest economic background are now trying to achieve the goal of launching CBDCs. At present, there are several countries such as China, Russia, Australia, Georgia, Switzerland, and South Korea that are currently working on CBDCs.
However, countries such as China and Russia are currently ahead of the rest as it is expected that they will be launching their CBDC before the end of the running year.
During the pandemic, the entire world as well as the global economy has realized the importance of digital assets. They are now well-aware of the role that the remote/virtual currencies have played during lockdowns and curfews.
According to the latest reports, even Japan is now in the process of testing its digital-yen. The Central Bank of Japan is reportedly working to launch a pilot for the digital-yen. The sources have confirmed that Japan is planning to do it by the coming spring.
However, there is still a lot of confusion surrounding the overall attitude of the Bank of Japan about the digital-asset. It is currently not clear whether the Bank of Japan (BoJ) will be proceeding with the issuance of digital-yen or not.
According to the local news agency, the Bank of Japan has also stated that it knows how much work and progress China has made in the issuance of digital-yuan. The Bank of Japan has admitted that China is currently taking the lead when it comes to the adoption of digital currencies.
The bank is fully aware that countries from around the world have already crossed the development phase. They are already taking their CBDC to the next level as they are almost done with the pilot phase.
Therefore, the Bank of Japan (BoJ) is everything into consideration such as economic changes, market dynamics, and international environments.
The BoJ has announced that it will be naming its pilot phase as the “first-stage testing”. In the testing phase, the BoJ will be releasing a digital token that will be serving the same purpose as the CBDC. The testing will be conducted around the distribution as well as the issuance of the digital asset in the country.