BoJ heightens its approach towards Japan digital currency with new team

Many central banks have woken to the concept of central bank digital currency (CBDC), probably due to China’s moves to issue one. Today, the Bank of Japan (BoJ) has heightened its approach towards a potential Japan digital currency, although it previously declined to have plans to launch a CBDC.

Japan sets up a digital currency team

Following a Reuters report on Monday, the central bank of Japan established a group to bolster its research on CBDCs. The newly formed team will reportedly work under the Payment and Settlement Systems Department, which was also formed by the central bank.  

Previously, the Japanese bank established a research group to examine the CBDCs, and also joined other banks for the same course, since January. While the major task assigned to the new team was not revealed, the report noted that it would continue from the central bank’s progress so far. 

BoJ slowly moves towards a Japan digital currency

BoJ is presumably gearing up its research towards CBDCs to stay ahead, in case it sees a need to launch a potential Japan digital currency in the future. In the report, the central bank admitted that the newly formed group takes a cue from the rapidly growing demand for digital payments, which is somewhat influenced by the coronavirus outbreak. 

Also, BoJ mentioned that it moves towards a potential Japan digital currency, are due to the growing efforts of other central banks around the world to explore the need to issue a bank digital currency. BoJ’s moves point towards a potential Japan digital currency, although it declined to have plans for one. 

Early in July, Cryptopolitan reported that the Japanese bank was examining a CBDC that can be used offline. Amongst other reasons, the bank mentioned that payment with cash was still prevalent in the country.