The Japanese government plans to include the digital currency of the central bank (CBDC) in its official economic plan. The information appeared 10 days after the announcement by the Central Bank of Japan that it would start experimenting with the digital yen to check its capabilities from a technical point of view.
According to Nikkei, reflections on CBDC will be included in the Honebuto Plan for Economic and Fiscal Revitalization. Honebuto plan is the cornerstone of Japan’s economic and fiscal policy, and the report says the government “will consider CBDC while coordinating with other countries.”
Japan and CBDC
After China began testing its digital yuan, the Japanese government accelerated preparations for its own CBDC. In March, in an interview with Cointelegraph Japan, Kozo Yamamoto, a member of the House of Representatives of the Liberal Democratic Party (LDP) and a former official of the Ministry of Finance, called on Japan to implement CBDC as soon as possible:
“If Japan doesn’t release 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 position took place quickly. In July 2019, the Bank of Japan maintained that “there is no CBDC emission plan”. However, in a report this month, he announced that he would start experimenting with the digital currency of the central bank.
According to Nikkei, it is the Japanese government, not the Central Bank of Japan, that has the final right to assess whether CBDC should be issued or not.
CBDC in the world
In February, the central banks of the United Kingdom, the euro area, Japan, Canada, Sweden and Switzerland announced a cooperation plan for research into the issue of digital currency emissions.
A few days ago we reported that the Central Bank of Lithuania, July 9, will begin the pre-sale of its CBDC – LBCOIN.
The Central Bank of Canada recently published an analytical note for its employees in which it stated that CBDC should be similar to ordinary money.
At the end of May, France tested the digital euro, which proved to be a success. The Central Bank of France conducted the test by issuing bonds in the form of security tokens, and then settling them in digital euros.
According published last year a survey of digital currencies, 70% of the central banks that took part in the survey are currently working or will soon start working on their CBDC.