Digitalization has advanced in various areas at home and abroad on the back of rapid development of information communication technology. There is a possibility of a surge in public demand for central bank digital currency (CBDC) going forward, considering the rapid development of technological innovation. While the Bank of Japan currently has no plan to issue CBDC, from the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, the Bank considers it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner. With this in mind, the Bank decided that it would publish its approach to "general purpose" CBDC -- that is, CBDC intended for a wide range of end users, including individuals and firms.

I. Expected Functions and Roles of CBDC There are two main variants of CBDC: "wholesale" CBDC and "general purpose" CBDC. Expected functions and roles of general purpose CBDC, if introduced in Japan, are summarized in the following.