Shinichi Uchida, executive director at the Bank of Japan, outlined the next phase of work on the country’s prospective central bank digital currency (CBDC) on April 13. 

Earlier in April, the central bank started phase 2 of its proof of concept, after which it will consider a pilot programme with financial institutions and payment service providers. 

The decision as to whether or not a CBDC should be issued cannot be made by the bank or the financial sector alone, Uchida said. “It will have to