The Bank of Japan on Thursday began a series of discussions with 60 companies on a pilot program to develop a digital yen is intensifying efforts to issue digital versions of its currencies for retail use by joining partners around the world.
The discussions will cover a variety of topics including business and technical features of retail settlements central bank digital currency (CBDC), the central bank said in a statement.
The BOJ has said that no decision has yet been made on whether Japan will actually issue a digital yen, which must be made by the government and parliament.
But the list of 60 companies chosen to participate in the discussion included several large Japanese companies, a sign that Japan is moving steadily toward such a launch.
In addition to megabanks and regional lenders, the group includes electronics giant Sony, convenience store operator Lawson, the financial arm of auto giant Toyota, as well as the East Japan Railway.
Central banks around the world are studying and working on digital versions of their currencies for retail use to avoid leaving digital payments to the private sector amid a rapid decline in the use of cash.
A survey published earlier this month by the Bank for International Settlements (BIS) found that nearly two dozen central banks in emerging and advanced economies expect digital currencies to be in circulation by the end of the decade.