The Nikkei Report on Wednesday confirmed that the Japanese government is set to launch digital yen as part of their annual economic policy.

Sources from the government have revealed that they are going to review the possibility of digital currency and in the forth-coming months, they will launch the digital yen. A special committee will be set up to evaluate the necessary action and top-level executives will be consulted to move ahead.

Earlier this month, the Bank of Japan had already indicated about scrutinizing the viability of CBDC from legal and technical and economic aspects but had not revealed about immediate plans for launch. 

The government will initiate this project under the national policy called “Honebuto Plan for economic and Fiscal Revitalization.” This plan is considered vital in the Japanese economic and fiscal policy.

Why Japan is in a Hurry for CBDC?

Japan was unlikely to issue CBDC so early but has quickened the pace to counter the Chinese digital Yuan and Facebook’s digital currency Libra which are progressing rapidly towards the launch. Recently Governor of Bank of England (Central Bank) also has revealed the possibility to launch their CBDC. 

Central banks across the world are examining the possibilities to launch their central bank digital currencies (CBDC).

In March 2020, Kozo Yamamoto, former Minister of State for regional revitalization had urged the government to proceed rapidly for digital yen. He stated, “If Japan doesn’t issue a digital currency and people in the world use other digital currencies, the Japanese yen will be forgotten and lose its sovereignty.” 

Earlier in January this year six Central banks comprising the Eurozone, Canada, Switzerland, and Sweden including Japan hand England have been spurred into action and have announced their plans to collaborate for research and assessment of Central Bank Digital Currencies (CBDC). They have been reviving the use cases and economic, technical, and design aspects including the cross border interoperability in their home jurisdictions.

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Crypto Business World

CBW - External Analyst

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