Major economies in Asia, China and Japan, continue to work on their Central Bank Digital Currency (CBDC) pilots for the issuance of digital currencies.
China and Japan are working intensively on CBDC
March 26 Bank of Japan announcedthat it established a Liaison and Coordination Committee for the Digital Currency of the Central Bank. It is about cooperation between the state and the private sector in the context of CBDC issuance.
“The bank, through this committee, will share details and updates on PoC [proof of concept] with the private sector and the government (…) “
– explained in the communication.
The document also notes that the bank is preparing to conduct the CBDC pilot program from October 2020. The tests will start next month.
Chinese state on March 23 media They said that six of the country’s major government-owned banks have started testing a wallet service that will be a tool for depositing digital yuan. Clients of these institutions can apply for participation in the tests. If their requests are accepted, they will receive access to the so-called Slave wallets to be connected to the central bank application that gives access to the digital yuan.
The central bank will reportedly consider each application individually.
How will child wallets work?
Subsequently, the applicants approved by the authorities will be sent text messages containing instructions on how to download and set up digital wallets by scanning a QR code. Child wallets will initially have payment limits of 1,000 yuan per day, but users may apply for an increase in this limit in the near future. Wallets can optionally be linked to existing bank cards issued by participating institutions.
The six participating banks are: Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, Postal Savings Bank of China and The Industrial and Commercial Bank of China.
It is worth recalling that since October China has been conducting advanced pilot tests on CBDC. These are conducted “on a living organism” in the country’s largest metropolises – Beijing, Shenzhen, Suzhou and Chengdu.