I mean why made new chain when you can find a dozen of it in crypto but if the chain is public is a progress. and this different from their CBDC right?
A quick Google translate shows that this is their own version of CBDC[1], that's how I understand it. I mean, the assumed use case of the pilot project and probably future implementation of this digital Yen are including but are not limited to:
- Payment networks for individuals and businesses like SWIFT network
- Any online payment that charges fiat from your credit card
- Digital stable coins issuance
- etc.
At the very least, this pilot might serve as a basis for the central CBDC. I can't imagine how troublesome it would be if they have many chains with different kinds of digital coins being issued by different parties. Unless they can converse one token to another in an instant or build a proper bridge that has good security, the risk of hacking and so on is too high IMO. Building a private chain is understandable to avoid unnecessary exposure, let's see how they handle international transfer though. I doubt other governments would agree to store their yen reserve on a chain owned by a single entity.
[1]
https://prtimes.jp/main/html/rd/p/000000019.000083257.html