A group of legislators in Japan are preparing a bill to launch a sovereign digital currency, according to Reuters.
One of the legislators said the move was taken after Facebook decided to launch its cryptocurrency Libra project and China planned to issue it digital yuan.
However, they said China’s digital yuan would be a ‘big problem’ if it is used in settlements.
Norihio Nakayama, member of the Democratic Party, said:
“China is moving toward issuing digital yuan, so we’d like to propose measures to counter such attempts.”
Details of Japan’s digital currency have not been unveiled yet. However, it would be a join initiative carried out by the local government and private companies.
However, the Japanese government is not expected to issue its new digital currency soon as it needs first to overcome regulatory hurdles.
China Seen Launching Digital Yuan This year
With the ongoing trade war with the biggest two economies of the world, both the US and China are racing to arm to the teeth with state-of-the-art technology. While blockchain technology, and blockchain-dependent cryptocurrencies, spreading their wings in every sector, the rivalry between the two giants extended to the crypto realm.
China is expected to begin public experimentation of its first digital currency yuan in 2020. The plans for digital currency/electronic payments (DC/EP) have been in development phase for a few years now, and the Chinese government started censoring news about its upcoming cryptocurrency in preparation for a release in the near term.
China will not be the first country to launch a state-backed cryptocurrency. Venezuela has already launched its own cryptocurrency the “petro” and is now accepting it for its sales of oil & minerals.
Libra Raises Concerns
In mid-2019, Facebook had unveiled its plans to launch its own cryptocurrency Libra. However, Switzerland’s President Ueli Maurer said Libra has failed and should be amended before sending to regulatory approval.
The cryptocurrency plan issued by Geneva’s Libra Association raised worries among regulators as regards its potential impact on the global monetary policies and financial sector.