Report on digital currency “A system that can be used even when communication is lost” 6:50, July 3, BOJ
The movement toward the issuance of electronic fiat currency = digital currency, which is delivered using smartphones instead of bills and coins, is becoming active in the world. The BOJ put together its first report on the technical issues involved in issuing it, and pointed out that a system that can be used even if communication is lost due to a disaster or the like is necessary.
Digital currencies are being studied in various countries, and China is preparing to issue a "digital yuan."
The Bank of Japan does not currently plan to issue it as the same fiat currency as bills and coins, but this time a specialized team was formed in February to start full-scale research, and on the 2nd, a report on technical issues Has been announced.
In the report, Japan points out that there are many natural disasters, and a system that can deliver and receive digital currency even if smartphones cannot communicate is necessary.
For example, when sending money in a state where communication is not possible, it shows a mechanism such as using a cryptographic technology to make information such as the recipient and amount of money into a symbol or number with a smartphone application and tell it to the recipient verbally.
Also, it is necessary to develop a dedicated terminal so that people who do not have a mobile phone can exchange digital currency.
Regarding digital currencies, major banks and telecommunications companies also form councils to discuss the impact on the economy. In the future, the BOJ will conduct proof-of-concept tests to find out if issuance is technically possible.