Japan’s cashless payment volume reached 42.8% in 2024, surpassing the government’s target, prompting the Bank of Japan to explore a central bank digital currency (CBDC). This evolution reflects a shift towards modern payment systems.
In 2023, the Bank of Japan began a pilot program for the CBDC, engaging private firms and the government to discuss the framework. Officials like Deputy Governor Shinichi Uchida acknowledge the potential of a CBDC while understanding the enduring relevance of cash.
Uchida forecasts the CBDC could be a vital infrastructure for future payments. However, he believes cash will remain significant in Japan’s economy in the near future despite increasing digitalization.
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