IS JAPAN ENTERING THE CENTRAL BANK DIGITAL CURRENCY SPACE TOO?

Posted 24 January, 2020

JAPANESE LAWMAKERS MIGHT BE MOVING IN ON THE CRYPTO SPACE

 

Since Facebook confirmed the rumors that it is going to launch its own cryptocurrency, lawmakers, regulators and central banks around the world take the cryptocurrency sector much more seriously. While some rushed to try to come up with rules and regulations for digital assets, central banks decided to take a different approach.

Many of them started working on their digital currencies, calling them CBDCs (Central Bank Digital Currencies). China’s announcement of the impending Digital Yuan sparked a new trend, but many others soon followed.

According to a recent Reuters report, Japan may be in line to announce its CBDC, suggesting that this move is a response to Libra and the digital yuan. At least, so says parliamentary deputy foreign minister Norihiro Nakayama that the coin could be a joint initiative of private companies and the Japanese government.

Nakayama is also a key member of the legislature of the Liberal Democratic Party, consisting of about 70 members, led by former Minister of Economics Akira Amari. Nakayama added that the group will present its proposal for a "digital yen" in early February.

 

 

OTHER REPORTS DENY THE IDEA OF JAPAN’S CBDC

 

However, as mentioned earlier, there are other reports that Japan has no real plans for a CBDC. Some people say that Taro Aso, Japan’s current finance minister, reacted to the rumors and decided to eliminate the confusion.

He allegedly stated that Japan has no plans to launch a CBDC, although he acknowledged that many central banks around the world are either already working on it, or at least are studying cryptocurrency and the idea itself.

Banks involved in creating their own CBDCs include the People's Bank of China, the Bank of England, the Bank of Canada, as well as the European Central Bank and even the Central Bank of Sweden. Recent reports also say that the central banks of Hong Kong and Thailand are joining forces to launch the CBDC, which would allow them to use the coin for international transactions between the two countries.

The Central Bank of Japan is also allegedly mentioned somewhere. This probably sparked rumors that lawmakers might issue a coin in the near future. But if this is true, the Japanese finance minister was clearly unaware of such plans.

In addition, the country is unlikely to release its cryptocurrency in the near future due to technical and legal difficulties, as confirmed by the Reuters report itself. The fact that the cryptocurrency sector is becoming the center of attention around the world is undeniable. Some of the world's largest economies are investigating this, or are already taking steps to establish control, or perhaps even domination.

Another thing that can be considered as security at the moment is that many Libra and the digital yuan pose a serious threat to the financial world, and they will certainly monitor the progress of both projects very closely.

 

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