Japanese officials are getting serious about the development of digital YEN. The urgent progress is easily noticeable in the country as the officials are persistently trying to spread the education on the importance and deployment of the digital Yen.
Recently, a senior ruling party Japanese legislator has mentioned in his statements on the plans of putting Digital Yen on government’s mid-year key policy guidelines and its imminent launch “within two to three years”, as per Reuters.
Kozo Yamamoto is the banking and finance systems research commission’s head of Japan’s Liberal Democratic Party (LDP). He is the State Minister in charge of Regional Revitalization; Regulatory Reform; Administrative Reform; City, People, Job-Creation; and Civil Service Reform.
Yamamoto believes that digital currencies would play a crucial role in “preventing a big swing” during the time of crisis and to stabilize the economy.” The stabilization could be possible “if each country manages to control flows of money with their own (digital) currencies.”
Reportedly, Yamamoto said, “The sooner the better.” The administrators would be soon drafting the proposals which are to be added in the Japanese “government’s policy guidelines, and hopefully, make it happen in two-to-three years.”
Further, Yamamoto mentioned his plans on working with Akira Amari to get the approval from the government on the adoption of the digital Yen proposal and accentuate its positive progress.
Amari is the Japanese politician of the Liberal Democratic Party and a member of the lower house. He had also served his role as the former economy, trade, and industry minister from 2006 to 2008.
Earlier, Amari also proposed to introduce the digital Yen “to counter China’s move” on issuing its Central Bank Digital Currency (CBDC).
Amari earlier said that “We live in a stable world led by dollar settlement. How should we respond if such a foundation collapses and if (China’s move) gives rise to a struggle for currency supremacy? Japan should work in close coordination with the United States. As part of such efforts, we should ask the United States to set [digital currencies] on [the] G7 agenda as chair.”
Before Amari’s statement Lael Brainard, the U.S. Federal Reserve Governor, while on discourse at a conference on payments at the Stanford Graduate School of Business uncover that the Fed is “conducting research and experimentation” on distributed ledger technologies (DLT) and their use case for digital currencies including CBDC’s.
Meaning, U.S.A is not showing a laid back attitude and already geared up to take up the advantages of digital currencies.
Apart from Japanese lawmakers, the legislators worldwide have sensed that China’s strategic planning and the intense technological developments are pointing that China is willing to capture the world’s emerging economies by spreading its digital control while deploying its digital currency. However, very few have risen and started to take immediate steps.
Japanese Felt Contagious Pressure facing China & Facebook Libra
Yamamoto added that Japan was not intending to launch its digital Yen soon but the continuous and unending growth in China’s CBDC and Facebook’s Libra project have created pressure on the Japanese regulators.
The testing of China’s CBDC is already kicked off. However, the details of China’s digital currency isn’t yet cleared it’s almost intimidating like Facebook’s stable coin Libra project.
According to Yamamoto, the range and spread of digital currencies may overpower the dominance of the dollar. Though digital currencies may be suitable for stabilizing emerging markets who are dependable on dollars like Cambodia.
No doubt, the growth in the digital currency is voluminous, however, it is also alarming at the same time, as the world economic powers are trying to acquire control over the evolving and emergent economies.
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