BOJ to start trials on digital yen next year as China moves ahead

G-7 central banks play catch-up to Beijing's planned virtual currency

Central banks face the challenge of issuing digital currencies without undermining policy tools like interest rates. (Nikkei montage)

KOJI OKUDA, Nikkei staff writer

October 10, 2020 05:34 JST

TOKYO -- The Bank of Japan said Friday it plans to begin trials next year for a central bank-issued digital currency as part of an international joint research effort.

The BOJ aims to start the trial early in the next fiscal year, which begins March 2021. The central bank said it has no plans to issue a digital yen, but it will lay the groundwork for such a move.