japanese official calls for urgent development of digital yen

Japanese Official Calls for Urgent Development of Digital Yen

Another Japanese lawmaker has publicly called for the swift development of the digital yen. The head of the banking and finance systems research commission at Japan’s Liberal Democratic Party, Kozo Yamamoto, said that the country should create a digital yen in two-to-three years.

As per the report by Reuters, Yamamoto said Japan should plan for its central bank digital currency (CBDC) and include the same in the govt’s mid-year policy guidelines. He further explains that digital currencies could quickly spread in emerging economies. It will help China (who’s working on a CBDC) advance its digital hegemony. Because of this, he said that development of the digital yen must be quick:

The sooner the better. We’ll draft proposals to include in government’s policy guidelines, and hopefully make it happen in 2-3 years. If each country manages to control flows of money with CBDC, that could prevent a big swing at a time of crisis. Also, it can stabilize their own economy.

Yamamoto’s remarks follow those of former economy minister and ruling party member Akira Amari. Akira said earlier that he wants to issue a CBDC to counter China’s upcoming digital yuan. Yamamoto admitted that the spread of CBDCs may undermine the dollar’s supremacy. Again, it could also stabilize emerging markets relying on the dollar such as Cambodia.

Japan’s Push for Digital Currency Research

Japanese lawmakers have recently called on their government to push for digital currencies to be placed on the G7’s agenda this year. Furthermore, at the end of January, the deputy governor of the Bank of Japan has said the institution must be ready to issue a CBDC should public demand surge to technical developments.

Meanwhile, the Central Bank of China recently completed the top-layer design and joint testing of the digital yuan.

What do you think about Japan’s plan to release digital yen to counter China’s digital yuan? Do comment!