Japan CBDC Tracker

Japan is in the pilot phase of its central bank digital currency (CBDC) development. Over the last few years, the Bank of Japan has conducted multiple pilot, proof-of-concept, and experimental CBDC projects. Bank of Japan Executive Director Kazushige Kamiyama told Reuters in June 2025 that the central bank had no plan to issue a CBDC.

### CBDC History and Development

The Bank of Japan partnered with the European Central Bank in 2017 to research the use of distributed ledger technology. Labeled “Project Stella,” the two central banks released reports detailing their progress in September 2017, March 2018, June 2019, and February 2020. Although the project initially focused on distributed ledger technology “solutions in the area of financial market infrastructures,” it later turned its focus to CBDC applications.

In October 2020, the Bank of Japan released a report titled “The Bank of Japan's Approach to Central Bank Digital Currency.” The central bank wrote that it “has no plan to issue CBDC,” but that it was preparing for that to change because it believed there “is a possibility of a surge in public demand for central bank digital currency (CBDC) going forward, considering the rapid development of technological innovation.” To that end, the Bank of Japan said that any Japanese CBDC would be managed through the existing financial system as an intermediated CBDC. However, to figure out how the CBDC could take shape, the central bank outlined plans for a proof-of-concept experiment and a pilot program that would start in early 2021.

In April 2021, the Bank of Japan launched a CBDC proof-of-concept within a closed experimental environment to test issuance, distribution, and redemption mechanisms.

The Bank of Japan established a “Liaison and Coordination Committee on Central Bank Digital Currency” in March 2021. The idea was to create a regular forum for discussing CBDC developments with the private sector.

This first phase of the CBDC proof-of-concept was completed in March 2022. Although the Bank of Japan reaffirmed that it “currently has no plans to issue central bank digital currency,” the findings from this phase showed advancements in terms of determining how the CBDC would be designed.

In April 2022, the Bank of Japan launched a second phase of its CBDC proof-of-concept to test “various additional functions” and “investigate their feasibility as well as challenges.”

The Bank of Japan published an interim report on CBDC in July 2022. The report said, “The decision as to whether or not a CBDC should be issued will have to be a judgment by the Japanese people,” and that the information that followed was meant to inform that judgment. For example, the Bank of Japan said a CBDC should incorporate five core features: universal access, security, resilience, speed, and interoperability. It was pointed out in the report that “unlike cash, it is easy to obtain personal information and transaction history about CBDC.” The report further noted that “the same anonymity as cash is not always granted” due to regulatory requirements.

The Bank of Japan shared an update on its work in February 2023. In addition to the experiments it was running and planned to run, the central bank would also convene a forum to discuss CBDC development with private businesses.

In April 2023, the Bank of Japan officially launched its CBDC pilot program. The pilot program was meant to test how citizens will ultimately access and use the CBDC through a network of intermediaries (e.g., banks and other financial institutions).

In May 2023, the Bank of Japan published its findings from the second phase of its proof-of-concept project. This phase included experiments to test restricting holdings, restricting transactions, paying interest, and other functions.

The Bank of Japan launched its CBDC Forum in July 2023.

Despite building out a CBDC for more than three years, most Japanese citizens appear to have been unaware of the Bank of Japan’s activity. When surveyed in September 2023, less than 20 percent of respondents had heard of CBDCs, and only 3.1 percent of respondents said they knew about CBDCs.

In January 2024, members of the Japanese government and the Bank of Japan met to discuss potential issues, legal considerations, and system designs for a Japanese CBDC. It was reported that participants of the meeting hope to have legislation finalized by the spring of 2024. In March 2024, Bank of Japan governor Kazuo Ueda said it had still not been decided whether a CBDC would be issued, but the Bank of Japan would continue to engage with the public before making a decision.

The Bank of Japan published an update in April 2024 that detailed both the history of the central bank’s work on CBDCs and its future plans. Notably, the update said that no decision on whether to issue a CBDC had been made. However, it also noted that the central bank will continue working to build one.

Also in April 2024, the Bank for International Settlements announced Project Agorá, a project in collaboration with the central banks of Japan, France, England, South Korea, Mexico, Switzerland, and the United States. According to the announcement, the project is meant to “explore how tokenisation of wholesale central bank money and commercial bank deposits on programmable platforms can improve the monetary system.” Project Agorá moved to the next phase in May 2024 with a call for private sector participation.

The Bank of Japan held its third CBDC Forum in October 2024. Most notably, the central bank shared that 18 companies were working on an “API sandbox project” to collect information on CBDC use.

Bank of Japan governor Kazuo Ueda gave a speech in December 2024 where he said the Bank of Japan “has been working in collaboration with domestic and overseas stakeholders to conduct experiments and explore institutional arrangements for a retail CBDC that is expected to be used by a wide range of entities, including individuals and firms.”

Bank of Japan executive director Kazushige Kamiyama told Reuters in June 2025 that the central bank had no plan to issue a CBDC.

### Human Rights and Civil Liberties Concerns

According to Freedom House, Japan ranks highly across nearly all metrics. Even then, however, it’s important to recognize that the creation of a CBDC could open the door to risks to financial privacy and financial freedom.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.