Japan is making progress in its efforts to adopt digital currency, with the Bank of Japan (BOJ) completing the second phase of its central bank digital currency (CBDC) proof-of-concept (POC) experiment and moving into the pilot phase in April as planned. During the second phase, the BOJ tested various technological applications for setting upper limits on CBDC holdings, with a focus on user experience and stability in the digital financial landscape. The results of the POC were successful, and Japan's pursuit of a digital yen represents a pivotal step in the realm of digital currency, positioning the country at the forefront of the next revolution in financial technology. The BOJ has committed to making its final decision on CBDC issuance by 2026, with a CBDC Forum established to solicit insights from private enterprises.