In a sign of alarm, Japan has called for establishing its own digital currency given the advancements made by China in blockchain adoption and Facebook’s Libra, ruling party lawmakers team is working to issue its own digital currency in Japan.
The parliamentary vice-minister for foreign affairs, Norihiro Nakayama in an interview said to Reuters that the digital currency could become a joint initiative between private and government companies that would eventually make Japan tune with the ongoing global changes in financial technology.
Central Banks All Over The Globe Including BOJ In Hurry
A key member of the group that comprises about 70 Democratic Party Lawmakers, Nakayama told Reuters that the firstmost step is to look into the idea to issue to digital yen for Japan. To that, he added that just like China is moving forward with its plan to issue digital yuan, they would also counter such attempts to issue their digital currency in Japan.
Nakayama said that the group is planning to submit its proposal soon by the next month. Bank of Japan is also planning to join six central banks to share expertise to issue its digital currency. Meanwhile, it is unlikely that the digital currencies of Japan would be launched anytime soon because of the legal and technical hurdles.
Shinzo Abe, the Prime Minister of Japan on Friday, told parliament that the government would start working with the Bank of Japan to study digital currencies.
This comes as a wake on Facebook’s push to launch its Libra that made central banks speed up their research on issuing digital currencies.
China has appeared as the front runner in this hurdle to creating digitalised currency. However, the details on the project are still pending.
Views Of A Former Board Member Of BOJ On Digital Currency
According to Takahide Kiuchi, former board member of BOJ, both China and Japan have different reasons to issue digital currency. Where China wants to increase the impact of yuan on the global community, Japan is interested in changing the cash-loving culture. He added that the best way is to use a hybrid-type digital currency which is issued and operated by various private firms with the association of central banks.