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.

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In an announcement from October 2020, the Bank of Japan outlined its approach to preparations for the issuance of CBDC. It explained the steps as a way to making the payment system more efficient and responsive to change.

Several other banks around the world are at different stages in their CBDC rollout process. In particular, a survey conducted at the end of 2019 by the Bank for International Settlements (BIS) found that 80% of participating central banks (66 surveyed) had CBDC in the works.

For instance, in South Korea, Shinhan Bank completed a pilot of the digital won, in preparation for the CBDC rollout by the central bank. Moreover, the central bank of Jamaica is planning to pilot the CBDC in December 2021 before the launch in 2022. In addition, the digital yuan is scheduled to launch before the Winter Olympic Games in 2022.

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