Japan plans to join the countries seeking to benefit from the central bank digital currencies (CBDCs).
China would be the first country to launch a CBDC named digital Yuan.
However, several central banks are initiating explorations to offer a new kind of digital currency that is directly linked to a central bank. The move is hypothetical currently, but once applied, it would change both the banking industry and the crypto space.
Japan, which is one of the most attractive markets for digital assets, could also promote the issuance of a digital yen, in light of its favorable position in this regard.
Last month, the Ministry of Finance, the Bank of Japan and the Financial Services Agency (FSA) met to discuss the feasibility of the digital yen.
Previously, Bank of Japan Governor Haruhiko Kuroda said:
“We are advancing research and study from the technical and legal perspectives so that we will be able to move in an appropriate way when there is a growing need.”
In light of the these meetings, the Bank of Japan has joined the list of monetary policy agencies that are interested in digital currencies, including the European Central Bank , the Swedish Central Bank, Bank of England, and Bank of Canada.
Nevertheless, Japan has lagged behind as a center of crypto business. The Financial Services Agency (FSA) has started with fairly lenient standards but proceeded to impose tough registration laws on exchanges.
Yamamoto urges government to issue CBDC soon
Cryptolydian earlier reported Kozo Yamamoto, head of the research commission on banking at Japan’s Liberal Democratic Party, as urging the government to issue digital yen soon.
The lawmaker said the mid-year policy guidelines should include the government’s proposals for a CBDC.
In a related context, a group of legislators in Japan are preparing a bill to launch a digital currency.
In addition, a legislator said the move followed Facebook’s decision to launch its cryptocurrency Libra and China’s plan to issue its digital yuan.