The Bank of Japan will explore the design issues of a central bank digital currency in measured steps like Sweden rather than pressing ahead with large-scale pilot tests like China, according to the BOJ’s point-man on digital yen research.

"Sweden’s staged and planned expansion of experiments is a better fit for us than China’s big-scale tests from the get-go,” Kazushige Kamiyama, the head of the BOJ’s payment system department, said in an interview.

"The framework and design of the central bank digital currency needs to be decided as a part of an overall settlement system for the future,” he added.