Japanese payment service to test national cryptocurrency

The Japanese payment system Japan Credit Bureau (JCB) will create its own digital cryptocurrency that will imitate the functioning of CBDC. The goal of JCB is to explore the possibility of using CBDC for everyday payments within the existing credit card system.

The developers of Japan Credit Bureau will focus on the use of a test version of CBDC in Tokyo, where the national cryptocurrency will be used to pay in restaurants. During the testing of the national cryptocurrency, JCB will rely on the experience of Sweden, not China, as previously thought. As the Central Bank of Japan emphasized, cryptocurrencies are not a priority area for the development of the country’s domestic and foreign economy, so CBDC will remain at the testing stage for now.

According to a survey of Japanese citizens, the majority of the population is not interested in digital currency, as the Japanese already have access to a large number of cheap and efficient online banking services and digital payment tools. «Despite the growth of digital payment methods, the use of cash continues to dominate in Japan. This is especially noticeable among the elderly aged 65 and older, who make up about a third of the country’s population,» a representative of the Central Bank said in early August.

As for the support of Web3 services, the Japanese government will allocate funding to promote modern technologies, including metaverse and NFT. Prime Minister Fumio Kishida announced this in front of the National Assembly. The official noted that as part of the digital transformation, the government will issue NFTs for local authorities. They will be issued to officials who use new technologies to solve social and urban problems.