Several countries across the globe have been trying their hand at native cryptocurrencies with major regions like China already implementing plans for a nationwide launch. The cryptocurrency market has had a long and arduous road since its inception but it looks like the efforts were finally bearing fruit.
Japan, one of the most cash loving countries on the planet recently spoke about the advent of cryptocurrencies into the mainstream realm with a focus on its future with digital assets. Reports from Tokyo stated that the country does not have any plans of launching its own central bank digital currency [CBDC] right now, although tabs will be kept on the research.
Japan’s interest in CBDC’s piqued after China immersed itself into the virtual asset’s world. The Chinese renminbi is set to maintain the standard for state-backed cryptocurrencies after President Xi Jinping also praised its capabilities. Currently, Japan does not have any plans of launching its own asset but it has revealed that native developer research will remain ongoing.
Japan’s Chief Cabinet Secretary Katsunobo Kato also gave his two cents on the issue. Mr. Kato has been an active participant in the discussions surrounding types of payments for the future. According to him:
“At present, we don’t have any specific plans to issue CBDCs. But this is something we obviously need to consider in a world of digitalization. The Ministry of Finance and other relevant ministries will deepen scrutiny on the need for issuing such digital currencies and their impact on the financial system.”
The Bank of Japan is responsible for the handling of a CBDC in the country with analysts claiming that careful consideration is required for functional requirements and economic design of the asset. Another factor that the bank would need to consider is the cooperation and role-sharing arrangements between a central bank and PSPs.
Reports have also suggested that the Bank of Japan will develop a test environment for the CBDC system and conduct experiments on the basic functions that are core to a CBDC. The focus has shifted towards a more streamlined economic system after the arrival of new Prime Minister Yoshida Suga. It now only remains to be seen how and when the Japanese digital currency will be implemented for the public to use.