The fidelity of the Japanese with cash is enormous. Although there are numerous mobile payment systems, the use of electronic payments in Japan is much lower than in its neighbors. while in japan is around 30%in South Korea and China they exceed 90 and 80% respectively.
A company anchored to cash. For years the Japanese government wants to change this trend and they have promoted the kyasshuresu (no cash). The objective set is to ensure that by 2027 electronic payments account for at least 40%. But to date all attempts have been ineffective for a profound change. Now, the Central Bank of Japan is preparing for a breakthrough that could radically change the system: the digital yen.
The tests of the digital yen arrive in spring. As described by his own CBDC, the first test of the digital yen will be launched next April. Shinichi Uchida, director of the Bank of Japan, explained that they want to verify the technical feasibility of the digital yen and receive feedback from companies and businesses, with a view to its possible public implementation in 2026.
At the tail of China and Korea… Japan’s commitment to the digital yen can be understood as a response to the movements of China, which has been using the digital yuan for several years now, giving it away and operating normally at ATMs.
…but in sync with the western world. Japan is, along with Europe and the United States, one of the members that joined with the Bank for International Settlements to create a digital currency. Both have been carrying out tests and it is expected that the digital yen will be able to match the euro and the digital dollar, when these materialize. A synchronization with the rest of the Western economies that would not be found in the Chinese digital currency.
Let everything work offline. Among the tests in Japan for this spring is resolving possible incidents when making transfers or withdrawals, as well as checking that there are no operating problems even if there are internet connection problems.
The most difficult thing: to convince. What this test will not have is access by consumers. Japan has yet to confirm that it will implement it. It is precisely the acceptance of citizenship that worries the Japanese government the most, since they have traditionally been a country closely linked to cash payments.
If mobile payments have failed to turn the tables, the digital yen is hardly going to be any different. What does seem clear is that the Bank of Japan is accelerating at full speed to try to modernize the payment system of a society still too anchored to notes and coins.
Image | Japanexperterna.se
