The conclusions of the second phase of the Bank of Japan’s (BOJ) central bank digital currency (CBDC) proof-of-concept (PoC) experiment have been made public, and the BOJ has also verified that its CBDC pilot project commenced on time in April. The second round of testing involved a flexible-value token model, user-friendliness in initiating and scheduling payments, and technology to establish upper limits on CBDC holdings. In order to handle many transactions with the same account more rapidly, an orchestration system was put into place. The experiment examined loads of 500 and 3,000 transactions per second while assuming 100,000 users and five intermediates. The protection of privacy and the avoidance of fraud were both taken into account while discussing offline payments, which were also taken into consideration. The BOJ has moved on to its scheduled CBDC pilot project after the PoCs were found to have successfully achieved their intended goals. The BOJ has said it would make a final decision on the issue of a CBDC by 2026 and will establish a CBDC Forum to seek input from private enterprises.
With multiple cryptocurrency businesses declaring intentions to submit applications for licences on June 1st, the race to attract Hong Kong retail crypto traders is set to begin. A number of companies, including CoinEx, Huobi, Gate.io, BitMEX, OKX, ZA Bank, and a division of the state-owned Chinese multi-industry conglomerate Greenland Holdings, have expressed a desire to get a VASP licence. The Hong Kong Licenced Virtual Assets Association (HKLVAA) and Web3 Harbour, two brand-new organisations serving the cryptocurrency sector, jointly announced their debuts. The SFC said on May 23 that individuals wanting to follow its rules are welcome to apply for a license and that licensed VASPs would be able to service retail investors as of June 1.