Bank of Japan Governor Haruhiko Kuroda said Monday that the central bank will begin experiments on a central bank digital currency (CBDC) in the spring, Reuters reported.

• The experiments will seek to determine requirements and principles for the issuance of a potential digital yen.
• Kuroda also made clear his preparedness to impose added monetary easing steps, saying the BOJ still has tools at its disposal to fight the economic effects of the pandemic.
• Last week, South Korea's central bank also said recently it will run trials of a CBDC during 2021, though it hasn't decided if a launch will follow.
• China's digital yuan is already in extensive testing, with the deputy governor of the People's Bank calling this weekend for its launch to be accelerated.

Also read: Federal Reserve, 6 Other Central Banks Set Out Core Digital Currency Principles