Japan has started to head its way to understand the technical aspects of launching the central bank digital currency (CBDC).
The Bank of Japan (BOJ) has started to move swiftly in the research of CBDC and now wants to closely apprehend the deployment of central bank digital currency (CBDC- digital Yen) after watching it’s global peers especially China.
No doubt, China’s plans on CBDC has invigorated the intensity among other countries to think about their central bank digital currencies. China has already started to test Digital Yuan in the cities of Shenzhen, Chengdu, Suzhou, and Xiongan.
No wonder, Japan is among the crypto loving countries and does not want to give any chance to China to hamper the sovereignty of the Japanese currency. Especially, after seeing the growing moves and interests of the mainstream public towards cryptocurrencies.
The latest updates from the country show that Bank of Japan (BOJ) has formed a new research team for deep exploration while following a 360-degree mechanism before launching a national Digital Yen.
Reported by Reuters, on July 20, the new research team is said to work with the previous CBDC team. Earlier, BOJ announced the collaboration with major European Central Bank (ECB) and the other five global central banks which together started joint research on CBDCs plans, the central bank research group formed earlier this year in January.
In Jan, six countries made the coalition via their central banks to assess the potential use cases of CBDCs and share their experiences. In the group, “the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank, and the Swiss National Bank, including the Bank for International Settlements (BIS)” was established for joint research on central bank digital currencies (CBDC), the press release from Bank of England mentioned.
Earlier, KoinPost reported on Japan’s plans to include the CBDC proposal in it’s economic and financial policy which Japan’s Cabinet would consider. Probably, the formation of new research team is a next step in this regard.
Though, officially there is no update on the launch of Japanese Digital Yen. Interestingly, the world’s fifth-largest bank by total assets of US$2,459 billion as of 2016, the Japanese bank holding giant and financial services company- Mitsubishi UFJ Financial Group, Inc.(MUFG) reportedly, looking forward to launching its stable coin shortly this year-end.
According to the Japanese officials, at the press time, presently, the plans and research are taking place on the proof-of-concept model including two main technical hurdles: universal access and resilience in for the digital yen.