The Japanese government is expected to include central bank digital currency (CBDC) in its official economic plan.. The news comes 10 days after the Bank of Japan’s announcement that it is experimenting with the digital yen to test its profitability from a technical perspective.
According to Nikkei CBDC considerations are included in the Honebuto economic and tax revitalization plan. The Honebuto plan is the foundation of Japanese economic and fiscal policy, and the report states that eThe Japanese government “will consider establishing an electronic communications data center in coordination with other countries.”
Japan and the CBDC
After China started testing its CBDC or digital yuan, the Japanese government has accelerated preparations for its own CBDC. In March, Kozo Yamamoto, member of the House of Representatives of the Liberal Democratic Party (LDP) and former official of the Treasury, asked Japan in an exclusive interview with Cointelegraph Japan to quickly implement the CBDC:
“If Japan doesn’t issue a digital currency and people around the world use other digital currencies, the Japanese yen will be forgotten and lose its sovereignty.”
The change of attitude was quick. In July 2019, the Bank of Japan claimed that “they had no plan to issue a CBDC”. However, In a report earlier this month, he announced he was experimenting with a central bank digital currency.
According to the Nikkei, The Japanese government, and not the Bank of Japan, has the final right to judge whether a CBDC is issued or not.
In February, The central banks of the United Kingdom, the eurozone, Japan, Canada, Sweden and Switzerland announced a plan to cooperate in investigating the issue of digital currencies.
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