A Japanese official from the ruling Liberal Democratic Party, Kozo Yamamoto, has called for the development of a Digital Yen on priority basis ordering the completion to be done within “two-to-three years”. The aim is to counter the digital currency initiatives of China as well as Facebook.
As indicated by Reuters report, Kozo Yamamoto commented a draft proposal for the development of the Govt’s virtual currency will be added in the government’s policy guidelines.
He was quoted as saying –
“The sooner the better. We’ll draft proposals to be included in government’s policy guidelines, and hopefully make it happen in two-to-three years.”
The Sr. Japanese Lawmaker’s proposal comes shortly after a group of Japanese officials proposed the development of a Digital Yen over concerns which surrounded the Libra stablecoin as well as China’s digital currency initiative. While talking to Reuters, Yamamoto disclosed that he would be working with the officials, led by the ruling Liberal Democratic Party heavyweight and former economy minister Akira Amari for pushing the Govt. to adopt their proposal.
The news outlet takes notes that Japan is probably not going to give its own digital currency sooner rather than later over the specialized and technical difficulties related with the move. However, the proposition show that Japan needs to check the potential impact that China’s digital currency as well as the Libra digital currency may have.
Japan’s national bank has been taking an interest in initiatives to look into CBDCs (Central Bank Digital Currenies) as well as their potential impact. As detailed, it recently held hands with the national banks of the EU, England, Canada, Switzerland, and Sweden to investigate digital currencies.
Yamamoto stated, these digital currencies could help balance out developing markets that depend vigorously on currenciese like USD.
He stated –
“If each country manages to control flows of money with their own (digital) currencies, that could prevent a big swing at a time of crisis and stabilize their own economy.”