Japan is lagging behind in building a central bank digital currency And it should help the United States build a digital dollar, says Takaya Nakamura, a senior executive at the Japanese crypto exchange Fisco.
It is reported that The Japanese government plans to include a central bank digital currency (CBDC) in its official economic plan shortlyHowever, the country is lagging significantly behind China’s efforts for the digital yuan.
In the global competition for the dominance of digital currencies Japan’s task should be to urge the United States to take CBDC more seriouslyNakamura told Cointegraph. “Japan no longer has the national power to do something independently”said.
“So it’s understandable if you want to work with other advanced countries and influence the development of digital currencies.”
The bank of Japan has already started to work with the central banks of Great Britain, Canada, Sweden and Switzerland. when examining digital currencies. The United States is not yet in the coalition.
Japan is economically and militarily dependent on the United States. In addition, Japan holds most of its foreign exchange reserves in US dollars. So, It would be “difficult for Japan to let go of the US dollar,” said Nakamura..
“European countries may think differently, but Japan isn’t even ready for CBDCs, and that’s not a good thing. I think Japan would be confident that the United States could move forward and the rise of the digital yuan through the digitization of the US dollar would block. ”
When will the US movement take place?
Last month, Fed chairman Jerome Powell made no concrete progress on the digital dollar.. But before the House Financial Services Committee, Powell said:
“If this is something that will be good for the US economy and for the world’s reserve currency, the dollar, we have to be there and understand it first and best.”
Nakamura attributes the Federal Reserve’s slow reaction to its already established advantage over the current dollar system. But he believes that if China becomes more aggressive with its CBDC and breaks the bastion of dollar hegemony, the United States will have no choice but to move forward with the digital dollar.
Another option would be to use a version of the Facebook Pound.. In April, The Libra has changed its white paper apparently to engage with U.S. regulators