The Japanese central bank could begin piloting the digital yen as early as spring 2023 and will reportedly start a trial involving “consumers and private sector companies.”

Per Nikkei, sources close to the matter confirmed that the Bank of Japan (BoJ) is close to completing its “basic functions” tests on the central bank digital currency (CBDC) prototype. Assuming there are no last-minute issues, the BoJ will then move on to “second-phase pilot testing” that “will begin in the spring of 2023.”

The BoJ has previously stated that it wants “second-phase pilot tests” to “involve private businesses and consumers.”

The same media outlet claimed that the BoJ is already in talks with “three mega-banks” as well as several regional banking players ahead of the pilot. It also added that these financial companies had “a positive attitude” to the pilot.

(By Tim Alper)