The Bank of Japan has released the second progress report on the digital yen pilot program, which may consider deploying CBDC on a public chain.

Odaily News Japan's Central Bank released the second progress report of its digital yen (Digital Yen) pilot program, which disclosed that a working group is studying how Central Bank Digital Currency (CBDC) can integrate with emerging technologies such as Distributed Ledger Technology (DLT). As part of the exploration, researchers are considering deploying CBDC on public chains. Although this solution is not feasible at the current stage, the potential future direction may adopt Layer 2 blockchain solutions with stronger control. It is worth mentioning that shortly after this report was released, Bank of Japan Executive Committee member Kazushige Kamiyama stated that there is currently no issuance plan for Central Bank Digital Currency.