The crypto space is growing rapidly and if these latest developments are to go by, mass adoption will happen in the next few years. The Japanese government is now getting serious about launching a central bank digital currency (CBDC). The Asian nation is expected to include consideration of a CBDC in its official economic plan.
That information comes barely 10 days after the Bank of Japan’s announcement that it will begin experimenting with the digital yen aiming to check its feasibility from a technical angle. Based on reports by Nikkei, the consideration of a CBDC is set for inclusion in the Honebuto Plan for Economic and Fiscal Revitalization.
By description, the Honebuto Plan is the basis for Japan’s economic and fiscal policy. Reliable reports indicate that the Japanese government is highly expected to consider a CBDC while coordinating with several other countries.
Japan And CBDC
After China started testing its digital yuan, Japan decided to accelerate preparations for its CBDC. In March 2020, in an exclusive interview with reporters, Liberal Democratic Party (LDP) Member of the House of Representatives, Kozo Yamamoto, who is also a former official at the Ministry of Finance encouraged Japan to implement CBDC rapidly:
“If Japan doesn’t issue a digital currency and people in the world use other digital currencies; the Japanese yen will be forgotten and lose its sovereignty”.
The massive turnaround in attitudes has been quite rapid. In July last year, the Bank of Japan insisted that they do not have any plans to issue a CBDC. But, in a report this July, the bank said that it would start experimenting with a central bank digital currency.
According to reports by Nikkei, the Japanese government, and not the Bank of Japan; has the final right to judge whether or not it is viable to issue a CBDC. In February 2020, the central banks of Canada, Switzerland, Britain, Sweden, Japan, and the Eurozone allegedly announced a plan to cooperate on researching issuing digital currencies.