The Bank of Japan announced today that it has begun Phase 1 of central bank digital currency (CBDC) trials.

The early phases of the experiment will focus on testing the basic functions of the CBDC as a payment tool, such as issuing, distributing, and recalling. Phase 1 will be implemented until the end of March 3.

The Bank of Japan will then move to Phase 2 to examine the more detailed functions of the CBDC, as announced last October. If necessary, the central bank moves to Stage 10, in which private businesses and end-consumers will participate in a pilot program.

The Bank of Japan currently has no plans to issue CBDCs, but the bank wants to prepare in advance if this need arises in the future, central bank chief executive Shinichi Uchida said last month.

In recent times, central banks around the world have been looking at the development of digital currencies. Currently, China is leading the CBDC race because it is about to launch the digital yuan after more than six years of research and development.

It can be seen that cryptocurrencies are evolving and becoming trending. Many large businesses and institutions have been interested and invested in experimenting with cryptocurrencies, and KDG is also catching on with this trend as well.