Bank of Japan Seeks ‘Plain, Easy-to-Cook’ CBDC Model

The Bank of Japan (BoJ) would try to develop a central bank digital currency (CBDC) that can easily coexist with private payment methods, Executive Director Shinichi Uchida said in a speech.

• Seeking “vertical coexistence,” with other payment methods used by the public, a CBDC should be made of “relatively plan, easy-to-cook material,” Shinichi Uchida said on Friday.

• The central bank official cited an example in which a CBDC could be used within a digital wallet provided by a private company.

• “There are various options, but the Bank of Japan would like to work with you to draw an overall picture of the payment system when the CBDC exists,” he said.

• The director said the priority of the central bank is that the addition of a CBDC should enable competition between private payment systems providers, while also being universally accessible by the public.

• This position was also stressed in a statement, which was released on Wednesday, by the finance officials of the G7.

• Uchida added in his speech that the BoJ has “no plans to issue a CBDC at this time,” but that not issuing one would still leave the central bank with the task of building a payment system fit for the future.