Is Japan's CBDC delay due to banking system opposition? The Bank of Japan (BOJ) has postponed a digital yen decision to 2026, focusing on pilot programs and public consultation. While the BOJ explores CBDC benefits like efficient cross-border payments, Japan’s robust banking infrastructure and widespread cashless options reduce domestic urgency. Banks, including megabanks like Mitsubishi UFJ, may resist, fearing deposit shifts and reduced lending capacity. Public awareness remains low, with only 3.1% understanding CBDCs in 2023 surveys. The BOJ emphasizes collaboration with private sectors via the CBDC Forum, but opposition from banks, prioritizing stablecoins and existing digital payments, could slow progress. Legal and technical hurdles, like ensuring offline functionality, further complicate issuance. Japan’s cautious approach reflects balancing innovation with financial stability, not outright banking opposition.