Japan's Central Bank Explores Digital Yen Integration with Emerging Technologies

According to Odaily, the Bank of Japan has released the second progress report on its Digital Yen pilot program. The report reveals that a working group is examining how central bank digital currencies (CBDCs) can integrate with emerging technologies like distributed ledger technology (DLT). As part of this exploration, researchers are considering deploying CBDCs on public blockchains. Although this approach is currently deemed unfeasible, future developments may involve adopting more controlled Layer 2 blockchain solutions. Notably, shortly after the report's release, Kazushige Kamiyama, an executive member of the Bank of Japan, stated that there are no immediate plans for issuing a central bank digital currency.