- One of the officials from Japan's Liberal Democratic Party, Kozo Yamamoto, recently suggested that the country develops its own CBDC.
- Yamamoto believes that this is necessary due to Facebook's upcoming coin Libra, and that it should be done within two to three years.
- Yamamoto will prepare his proposal in collaboration with another official, who is concerned about the impact of China's CBDC.
The number of countries that are announcing the development of their own central bank digital currencies (CBDCs) continues to grow in response to Facebook’s Libra, and China’s digital won. However, while Japan claimed that it has no such plans until now, it appears that the situation in the country is about to change.
According to a senior lawmaker of Japan’s LDP (Liberal Democratic Party) — which is the country’s ruling party — the government should, in fact, create a CBDC of its own. The official in question is Kozo Yamamoto, who also acts as the LDP head of research commission on finance and banking systems.
Yamamoto believes that the country’s digital yen should be out soon, preferably within two or three years. However. he believes that the country should start working on it as soon as possible and even include the plan for its own coin in this year’s mid-year key policy guidelines.
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CBDC as a response to Facebook and China
Yamamoto’s decision seems to be motivated by the expected arrival of Facebook’s Libra, which will give the company a global financial footprint. But, even if countries do create their own cryptocurrencies to match Facebook, it is still questionable whether they will be in charge of money control in the future.
Yamamoto is not the first to express such concerns, nor to propose such a solution. Similar remarks were made only a week earlier, by Akira Amari, the country’s minister for the economy. However, Amari seems less concerned about Facebook and its stablecoin, Libra, and more about the potential impact of China’s digital yuan. With both members of the party having similar concerns and proposing the same solutions, Yamamoto and Amari plan to collaborate on seeing their proposals through. Their goal is to convince the government to adopt the solution and start working on the country’s native digital money before long.