Resolution Sufficient capital in the financial system helps support the resiliency of individual banks, but it is still important to ensure that, if a large firm gets into trouble, it can be resolved without a costly bailout. The Dodd-Frank Act established the framework necessary to end bank bailouts.
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.