A new digital currency is set to be in the horizon. This came after the announcement that JCB will be launching a pilot project that will see a new CBDC or central bank digital currency.
Developments in FinTech for Japan
JCB is a Japan-based global payments brand. They will be working on the pilot project together with IDEMIA and Soft Space.
IDEMIA is an identity technologies company from France while Soft Space is a digital payment technology provider company.
A project that changes the currency sector
The partnership is called the JCB Digital Currency and is known in short as JCBDC. For a start, they will be rolling out a DCBC payment solution.
From there, they will be conducting tests with merchants mainly in Tokyo. One of the biggest hurdles that caused the reluctance of merchants to accept CBDCs is the convergence of current technology.
Hence, for this project to work, JCB is working towards solving the issue. This means that they are trying to change the merchants’ reluctance so CBDC payments can be carried out without needing new devices.
In other words, the current contactless payment solutions, POS terminals and card-based interfaces would all be roped in to accept the new payment method.
If that is possible, then those solutions will become more acceptable to those making payments. This would apply to those who might not have smartphones, although that is most likely not the case.
With an easier approach using existing interfaces, users won’t find complicated platforms so intimidating anymore. Thus, it would surely spread the use of CBDCs in the near future.
To develop the payment system, Soft Space and IDEMIA will both work closely to assist JCB. Development should wrap up by the end of 2022. After that, pilot tests involving the merchants in Tokyo should take place all the way until the end of Quarter 1 of 2023.