By Leika Kihara

TOKYO (Reuters) – The Financial institution of Japan have to be able to difficulty central financial institution digital currencies (CBDCs) that coexist with varied different types of cash to supply the general public with a protected digital fee system, its Governor Haruhiko Kuroda mentioned on Tuesday.

The central financial institution will launch a pilot program in April to check the usage of a digital yen, becoming a member of a rising variety of nations looking for to meet up with chief China in launching a CBDC.

“Guaranteeing the coexistence of the CBDC with varied different types of foreign money…is one thing we have to obtain and can the truth is obtain sooner or later,” Kuroda mentioned in a speech at a monetary know-how seminar.

“There are totally different choices out there to us as to how and when to do that. However it’s our responsibility as a central financial institution to be ready to react flexibly to any altering circumstances,” mentioned he declared.

The BOJ mentioned the pilot program, which is able to observe two years of experiments it carried out, will assist it’s prepared in case the federal government decides to difficulty a digital yen.