Shinichi Uchida – an executive from the Bank of Japan (BOJ) – reportedly revealed that simplicity will be at the core of the development for the digital yen – Japan’s CBDC which is still in research phases. 

Specifically, Uchida reportedly delivered his remarks via a speech calling for modalities to be in motion, to guarantee the coexistence of the CBDC with current private payment measures.

For Uchida, vertical integration of the digital yen within the private sector payment matrix will need a CBDC design that offers simplicity.

Part of this simple design may reportedly come with establishing a framework dedicated to enabling individuals to utilize both the CBDC and electronic payment services from one wallet, consequently making it possible to carry out seamless switching between both channels.

Per Uchida, vertical integration will reportedly act as an incentivization for the private sector  to adopt Japan’s CBDC, consequently resulting in an increasing amount of valuable services.

Previously, the BOJ has reportedly initiated preliminary proof of concept research associated with the potential of introducing a CBDC. The second phase of the digital yen will begin in the second quarter of the next year. 

Japan is reportedly among the numerous countries in the Asia Pacific financial area deep-diving into the merits of operating a central bank digital currency, particularly amid the time China’s digital currency electronic payment initiative is rapidly developing. 

In March, the BOJ reportedly revealed details associated with the formation of a Liaison and Coordination Committee, made up of public and private sector participants, responsible for jointly working on the digital yen CBDC pilot.