Japan is getting serious about its own CBDC

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys playing cricket,… read more.
on Jul 15, 2020
  • Japan's authorities are considering whether a CBDC should be included in the country's economic plan.
  • The announcement comes soon after the Bank of Japan announced plans to start CBDC testing.
  • While initially against the idea, Japan saw a large change in attitude after China started CBDC tests.

Debates about launching a CBDC have been a hot topic in Japan ever since China announced its own digital yuan. However, the country’s initial decision is that launching its own CBDC is not necessary.

However, as time went by, the discussions continued, and it appears that Japan’s authorities are finally ready to seriously consider this option.

Japan to consider including CBDC in economic plan

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According to recent reports, the Japanese government will include consideration of adding a CBDC to its economic plan. The news comes as a confirmation of the central bank’s recent announcement that it plans to start experiments with the so-called digital yen.

The Bank of Japan was interested in checking whether or not launching and using the coin is possible from a technical perspective.

The news that the CBDC might be included in the country’s economic plan came from Nikkei. Allegedly, the country’s government will consider including it in the Honebuto Plan for Economic and Fiscal Revitalization. Authorities even revealed plans to coordinate the move with other countries.

China’s CBDC tests gave Japan the push it needed

As mentioned, debates about whether or not Japan should implement a CBDC have been going on for a while. Some were against the idea, claiming that the country has no need for it.

Others, like LDP Member of the House of Representatives, Kozo Yamamoto, urged the country to act and come up with a CBDC, and to do it fast. His advice came earlier this year, in March when China started testing its own CBDC in real-world situations.

China’s move seems to have brought a significant change in attitude. One year ago, the Bank of Japan insisted that there are no plans for it to issue a CBDC. Only a few weeks ago, however, it announced that it will start testing it.

The final decision, according to Nikkei, lies with the Japanese government, which is the entity that has the right to decide whether a CBDC is needed or not.

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