Financial and monetary authorities in Japan are accelerating the process of creating their own digital currency. The Ministry of Finance, the Bank of Japan, and the Financial Services Agency have held an undisclosed number of meetings to establish a clear vision before eventually launching a central bank digital currency (CBDC).
Japan Prepares For A Bank-Backed Cryptocurrency
A recent local report informs about the meetings held by the BOJ, the FSA, and the MOF. Per the document, the country’s most prominent financial authorities discussed the potential merits and drawbacks of launching a digital currency.
They believe that a central bank digital currency (CBDC) could strengthen Japan’s online presence due to lower costs for cross-border financial transactions and easier access. However, the monetary authorities bring out possible illegal usage, as well. According to them, digital currencies could create opportunities for money laundering and other financial crimes.
The report notes that the vice minister of finance for international affairs, Yoshiki Takeuchi, FSA vice-minister for international affairs Ryozo Himino, and BOJ executive director for international affairs Shinichi Uchida attended the last meeting. Among all topics, they discussed how a digital currency would impact the current dollar-centered global financial system.
BOJ Gov. Haruhiko Kuroda believes that launching a CBDC needs more extensive research to comply on various requirements:
“We are advancing research and study from the technical and legal perspectives so that we will be able to move in an appropriate way when there is a growing need.”
Japan’s Activity For a CBDC
Earlier this month, Japan noted that it would release drafted proposals for the creation of a CBDC. The move appeared as a direct response to China’s advancements in this area. Norihiro Nakayama, a senior lawmaker of the country’s ruling party, explained that Japan needs the U.S. if it wants to compete adequately:
“Without the U.S., we cannot counter China’s efforts to challenge the existing reserve currency and international settlement system.”
Cryptopotato also reported another upcoming collaboration. The central banks of Japan, Britain, Sweden, Switzerland, and the Eurozone will enter a dedicated group. Its primary purpose is to examine potential need cases for launching their own cryptocurrency.
In any case, many central banks are getting more and more serious in terms of digital currencies. Just yesterday news came that Sweden is already testing a national cryptocurrency.