DIGITAL ASSETS
CBDC Pilot tests in Japan, Korea, Saudi Arabia, UAE and Europe
Explore the strategies and initiatives undertaken by economies across the globe for digital currencies and how each nation contextualised its requirements, with a leading fintech and blockchain advisor.
Policy Analysis
Digital Literacy
Risk Management
Strategic Planning
Cross-Border Understanding
Course Lessons
The Pilot Tests: Japan's Digital Yen
Chapter 1 introduces Japan's exploration into a potential Central Bank Digital Currency (CBDC), the digital yen. The Bank of Japan has initiated pilot tests to examine the basic functions of issuance and circulation of a CBDC, despite having no immediate plans to launch one. The chapter discusses the three-phase Proof of Concept (PoC) approach being taken to test these functions and the possibility of a future pilot program involving Payment Service Providers (PSPs) and end-users
The Pilot Tests: South Korea's Digital Won
Chapter 2 examines South Korea's approach to developing its own CBDC, the digital won. The Bank of Korea has initiated a pilot scheme to explore the practicalities of launching a digital currency, mirroring Japan's cautious yet preparatory strategy. While there are no immediate plans to introduce the digital won, the central bank is focused on ensuring readiness for potential future deployment. South Korea has even developed a technical platform for pilot testing with the help of Shinhan Bank and LG CNS.
Project Aber
Chapter 3 delves into Project Aber, a collaborative initiative between the Saudi Central Bank and the Central Bank of the United Arab Emirates to explore the development of a joint digital currency for cross-border transactions. The project, which began in January 2019 and concluded in November 2020, aimed to assess the feasibility of a wholesale CBDC as a settlement unit between commercial banks in both countries.
The European Union's Digital Euro
Chapter 4 focuses on the European Union's exploration of a potential Central Bank Digital Currency (CBDC), the Digital Euro. The European Central Bank (ECB) conducted a public consultation from October 2020 to January 2021, receiving significant feedback emphasising the public's desire for privacy and security in a digital currency.