Bank of Japan recently published a report that delves into the legalities of issuing a digital Yen. Japan is not the only country that is considering to issue a central bank digital currency (CBDC). Neighboring country China is all set to launch its national digital currency sometime next year.
Is Japan following China’s footsteps?
The report published by the Bank of Japan on CBDC examines the legal issues surrounding the issuance of CBDC in the country. It also discusses the legal issues that may arise from the implementation of a national digital currency within the legal framework of the country. The report suggests that it is necessary to revise existing laws to make national digital currency legal.
No plans to issue CBDC any time soon
Earlier in July, Deputy governor Masayoshi Amamiya said that the central bank of the country is far from issuing a central bank-backed digital currency. But she mentioned that the bank would continue to conduct research and study digital currencies. The report states that legal money is limited to banknotes and money under the current law, and it is difficult to include electronic currency such as CBDC as interpretation of banknotes. USA, Russia, Turkey and Canada are also studying CBDCs.