The role of central banks may be considered from the perspective of market initiatives, such as promoting the development of financial markets related to climate change. The Transformation of the Monetary System The third frontier is the transformation of the monetary system, induced by digitalization. Many central banks are working on the issues surrounding central bank digital currency (CBDC).
The Bank of Japan has been testing the technical feasibility of the functions and features required for CBDC. Specifically, in April this year, the Bank of Japan moved from Proof of Concept Phase 1, aimed at testing the basic functions of CBDC, to Proof of Concept Phase 2, in which additional functions are added and tested.