Japan is planning to consider the possibility of issuing CBDC in cooperation with other countries in this year’s official economic plan.
15 July, 2020 | AtoZ Markets – Countries continue to consider the possibility of adopting Central Bank Digital Currency (CBDC) as Facebook’s Libra appears to have been the catalyst for the global CBDC competition. Libra may have shaken some wings, but Japan seems concerned about the development of CBDC.
Japan Issuing CBDC in Economic Policy Framework
According to Nikkei, Japan is expected to include consideration of CBDC in the official Honebuto Plan for economic and financial Revitalization. The Honebuto Plan is a policy guideline to formulate policies relating to economic and financial management.
The Bank of Japan (BoJ) has also conducted research on CBDC. It is to confirm its feasibility from a technical point of view. BoJ is considering whether to use a blockchain for CBDC or not. The BoJ also said, “It is important to develop the CBDC to be available to a variety of users”. However, it does not have the plan to issue CBDC immediately.
Kozo Yamamoto, Liberal Democratic Party (LDP) Member of the House of Representatives and a former official at the Ministry of Finance said:
“If Japan doesn’t issue a digital currency and people in the world use other digital currencies. People will forget and The Japanese yen will lose its sovereignty”.
Mr. Yamamoto also said, “If each country manages to control monetary flows with its own digital currencies, this could avoid a big wave at a time of crisis and stabilize its own economy.”
In February, Japan, Canada, UK, Eurozone, Sweden and Switzerland central banks announced plans to share their insights on the issuance of digital currencies amid growing debate over the future of currency.
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