CBDC

In the middle of 2023, the FSA introduced a new regime of a Japanese version of Stable Coins, which must be fully backed up by legal tender. The regime, however, is being put on hold until banks put in place sufficiently robust risk control and customer protection measures. As some global banks are interested in this area, we will monitor further developments. In summer 2023, the BOJ launched the “CBDC Forum” and 3 Working Groups, following a couple of years of proof-of-concept desk-top simulation. The BOJ says there is no imminent need or concrete plan to issue CBDC in Japan, but they are preparing for the future. We will monitor further developments.