BOJ eyes pilot experiments next year to issue digital yen - source

TOKYO (Reuters) -The Bank of Japan (BOJ) will begin preparations to conduct a pilot experiment with private financial institutions next year towards issuing a digital yen, a source familiar with the matter told Reuters on Wednesday.

The move, widely expected, will follow two years of experiments the BOJ has been conducting to decide whether to issue a central bank digital currency (CBDC).

The Nikkei newspaper reported earlier in the day that the BOJ will start pilot experiments for launching a digital yen with Japan's three megabanks and regional banks next spring.

A spokesperson for the BOJ was not immediately available to comment on Wednesday, a public holiday in Japan.

The move will come after the BOJ wraps up a second phase of its CBDC experiment that started in April, and which will last about a year.