The Bank for International Settlements, BIS, partnered with a group of seven central banks to release its first report on central bank digital currencies (CBDCs) on Oct. 9 together, centering on the basic principles as well as key features of CBDCs.
As per the report, the Bank of Japan - one of the members of the group - released a document which expounds its own unique approach to CBDCs from a Japan-centric view.
The BoJ report showed that it will start the first of several testing phases for its own CBDC sometime in 2021, covering developing a test environment for the currency and experimenting on its basement functions as a payment instrument.
As per the BoJ report, a key characteristic of the digital currency must remain resilience amid infrastructure disrupted by forces Majeure, noting: "Offline use in times of system and network failures as well as electrical outages is also important for Japan, given the frequent occurrence of natural disasters."
The nature of its geography leads Japan to be likely to suffer a variety of natural disasters, covering earthquakes, tsunamis, floods, typhoons, cyclones and volcanic eruptions.
There's no detailed information on the way how to provide against such events might be realized, though there are solutions to solve the issues of potential electrical or network failures for Bitcoin (BTC) and other cryptocurrencies based on blockchain, according to the report. To develop mesh networks based around long-wave radio transmitters and Blockstream's satellite network to broadcast Bitcoin transactions through space is included.
Jan. 2020 saw the establishment of the BIS digital currency research group, covering central banks from Japan, Canada, the United Kingdom, Sweden, Switzerland and the European Central Bank. At the same time, the United Stated Federal Reserve has since been a member of the group.