Japan (Nihon), the land of the rising sun is one of the most popular and massive bases for cryptocurrency users and investors. Any significant discussion eventually needs to address to Japan being one of the largest economies in the world for Bitcoin.
However, Japan has not the “national power to do something independently” and is mostly reliant on the U.S. for its political, economic, and military resources. Said, Takaya Nakamura, an executive of Japanese crypto exchange Fisco.
According to a 2018 Pew survey, Japan is one of the most pro-American nations where 67% of Japanese see America positively and favorably. Also, the government of Japan keeps most of its foreign currency reserves in the form of U.S dollars, and to let go of US dollars would be hard for Japan.
Reportedly, Japan may have to depend on the United States for the guidance and encouragement over the development of the Japanese Central Bank Digital Currency- CBDC (Digital Yen).
According to Nakamura, Japan is behind China when it comes to launch Digital Yen and compete with the Chinese Digital Yuan. Japan must push the United States to speed up the process of launching Digital Dollar. If Japan wants to compete globally in the race of establishing supremacy in digital currency, the backing of the U.S is highly important for the country.
China’s aggressive approach towards the launch of Central Bank Digital Currency- CBDC (Digital Yuan) is seemingly visible and maybe with the coming time, it may collapse U.S. dollar hegemony.
Earlier, KoinPost reported, Japan is planning to include Central Bank Digital Currency- CBDC (Digital Yen) proposal in its imminent bold economic and financial management policy: Honebuto Plan for Economic and Fiscal Revitalization which would be considered by Japan’s Cabinet shortly.
In the process of understanding the important aspects and technological feasibility of CBDC plans, the Bank of Japan (BOJ) has officially started to collaborate with various nations including Central Banks of Britain, Sweden, Canada, and Switzerland. Reportedly, the country is in the process of having an association with the European regions and the United States.
Nakamura mentioned, the possibility is, European nations may not be prepared for CBDC due to some different approaches. However, this is not good for Japan. “Japan would be hopeful for the United States to move forward and block the rise of digital yuan by the digitization of US dollars”