A digital Yen can soon become a reality. A senior lawmaker from the ruling Liberal Democratic Party of Japan, Kozo Yamamoto, has advocated the need to develop a digital Yen in the next two to three years. Lately, crypto voices are rising in the Asian country in support of a Japan central bank digital currency to compete with China’s virtual Yuan and Facebook’s Libra.
Japan has always been very supportive of technological innovations. The blockchain industry is thriving well in Japan. However, its digital currency scene is somewhat average compared to its Asian peers. Yamamoto wishes to change all this. He added that a draft proposal for a Japan central bank digital currency development would be featured in the next policy guidelines.
Japanese Yen needed to counter Chinese digital Yuan
Yamamoto says the Japanese authorities must realize the need to build a digital Yen sooner. The proposed draft will be included in the upcoming government policy guidelines that will ensure that a Japan CBDC is ready in the next two to three years.
Recently, a coterie of Japanese lawmakers expressed concerns over the rapid development of China’s virtual currency and its impact on the world financial markets. Also, they were apprehensive about Facebook’s Libra. The same group of lawmakers recommended the creation of a digital Yen. Additionally, Yamamoto said that he would build consensus in the government for such an initiative. Akira Amari, former minister for economy, will also be roped in for the project.
Rising support for a Japan CBDC warranted action
Lately, the Asian country has seen support increasing for a digital Yen. More young people are in favor of a national virtual currency regulated by the central bank. The regulatory and technical challenges must be overcome to make this happen. Proposals, as mentioned by Yamamoto, show that authorities want to curb the increasing influence of China in the cryptocurrency realm.
The central bank of Japan, too, has been vocal about a digital Yen. It holds positive views about CBDCs. Reportedly, it also worked along with other major central banks of the world to explore this concept further.
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