Japan Accelerates Cashless Push Amid CBDC Exploration

Japan's financial authorities are prioritizing payment system modernization as the nation transitions toward a cashless society. Bank of Japan Executive Director Kazushige Kamiyama emphasized the need for resilient, universally accessible settlement infrastructure despite maintaining no formal position on central bank digital currencies.

Physical currency remains prevalent but faces declining usage as digital payment adoption grows. The BOJ has conducted preliminary technical experiments on a potential digital yen, though any issuance decision rests with government and parliamentary authorities.

The developments follow renewed global CBDC debates sparked by recent US policy shifts. Japan's approach balances innovation with caution - upgrading existing systems while keeping digital currency options open.