A senior ruling party lawmaker of Japan said on Monday that the country should focus on developing its own digital currency yen within two to three years and should also include it into the government’s mid-year key policy guidelines. The head of the research commission at Liberal Democratic Party, Kozo Yamamoto, remarked that Facebook’s push for launching its cryptocurrency Libra had raised questions whether nation-states would continue controlling money in future.
Japan To Hopefully Issue Its Digital Yen In Two-three Years
According to Yamamoto, the sooner they’ll issue their digital currency, the better it would be. He further added that they’d draft proposals that could be included in government’s policy guidelines and hopefully make it happen in the next two-three years.
Furthermore, Yamamoto said that he would work with former economy minister Akira Amari in order to push the government for accepting their proposals. Clearly, there’s no chance of seeing Japan issuing its digital currency anytime soon, and that is because of the ongoing technical and legal issues. However, the continuing moves reflect the pressure Tokyo feels as China moves forward with its plan to issue its own digital currency, and Facebook pushes its libra launch.
Not only Japan but all the central banks across the world had speed up their research and work on issuing their own CBDCs. China is the first to propose its plan for issuing CBDC, but the details to the same are still scarce.
According to some Japanese lawmakers, China’s planned digital currency could be utilised as a way to advance the country’s digital dominance and circulate widely among various emerging economies. This would undermine the dollar’s supremacy and would allow emerging market that heavily relies on it to stabilise their economy. Yamamoto commented that countries could manage flows of money using its digital currencies that would help support their economy.