Japan Credit Bureau (JCB) released its digital currency ahead of the country’s introduction of CBDC. According to JCB’s projections, requiring seniors and young people to learn a new payment system might slow the widespread adoption of CBDCs. Since the company already has a contactless payment system, merchants, point-of-sale terminals, and user interfaces based on plastic cards, it wants to see how well CBDC works with this current infrastructure.
The payment processor is teaming together with IDEMIA, a leader in identification technologies, and Soft Space, a pioneer in financial technology, to make this a reality. It is anticipated that the payment system will be developed by the end of 2022, with trial testing with Tokyo retailers continuing until March 2023.
Modifying Our Concept on CBDC Intake
The partnership between IDEMIA, JCB, and Soft Space, as stated by IDEMIA’s executive director Romain Zanolo, is “redefining the core basics of the payment ecosystem.” Zanolo thinks the agreement will help CBDC expand throughout the world. The CEO of Soft Space, Joel Tay, is likewise quite excited about this partnership and what it implies for the organization.
The experiment, as explained by JCB’s Senior Executive Officer Koremitsu Sannomiya, demonstrates that legacy payment acceptance infrastructure is compatible with modern CBDC payment methods. He said this is great news for buyers and sellers.
Though Japan isn’t likely to introduce a CBDC anytime soon, the country’s initiatives are speeding up and becoming more transparent. No nationwide trial programs are in the works, in contrast to China. But despite that, the project is moving on to a new phase as planned. The JCB, it stands to reason, does not want to be blindsided.
However, Governor Haruhiko Kuroda of the Bank of Japan has already suggested that a decision on issuing a CBDC would not be made until 2026.
The Japan Credit Bureau’s Attempts to Implement Blockchain
Other than developing its own digital money, JCB has been exploring blockchain, cryptocurrencies, and Web3.
Last December, it formed a strategic alliance with Datachain, a blockchain company, to study blockchain interoperability and create a digital currency exchange platform. Recently, it worked with JP Games and Fujitsu to develop a decentralized ID system for the Metaverse. With this identification, the metaverse and gaming industries will have more reliable digital data storage and greater levels of interoperability amongst their various platforms.
