TOKYO (Reuters), – Any digital currency issued by the Bank of Japan must have a straightforward design, which private businesses can use to provide financial and payment services for their customers.

Shinichi Uchida, executive director of BOJ, stated that if central banks decide to issue digital currency, they must co-exist and provide payment services for the private sector.

He said in a speech that “To attain vertical coexistence it is desirable that a relatively simple central banking digital currency (CBDC), design be used by the private sector for development of various services.”

Uchida explained that services could be developed by private entities to allow customers to make use of both CBDC as well as private payments with one wallet.

To modernize financial systems, and accelerate international payments, global central banks are stepping up their efforts to create digital currencies.

According to the BOJ, CBDC is not currently under consideration. It did however launch the first stage of its experiments with CBDC in this year’s inaugural phase. The BOJ also established a panel for regular exchanges of views with the private sector as part of an effort to make sure any digital currency issued does not suppress private innovation.