TOKYO – The Bank of Japan announced Friday that it will launch the first phase of its CBDC in April to test the practicality of a digital Yen, according to a press release. 

The initial phase will be divided into two parts: to test the technological framework, and then to test its operational feasibility in the private sector. The goal is to measure the system’s network, intermediaries, and end-points to determine the CBDC’s overall effectiveness. 

BOJ director Uchida Shinichi stated, “we have engaged in discussions from a wide range of perspectives, including the future of payment and settlement systems suitable [for] a digital society.”

Japan’s economy has been struggling with inflation as of late and it is not known what effect a fully-adopted CBDC would have on the country. Last month, the BOJ unexpectedly eased government-capped interest rates and removed its yield curve control which rattled markets.