Japan will look closer into whether to issue central bank digital currencies (CBDCs). The Japanese government revealed in its annual policy roadmap, a sign that Tokyo may be warming up to the idea as the ongoing COVID-19 pandemic heightens demand for cashless payments. According to the Reuters report, the government of Japan has urged the Bank of Japan (BOJ) to liaise with other countries to examine the feasibility of a CBDC jointly.
The BOJ will coordinate with other countries to examine CBDCS.
The report mentioned a document that serves as guidance for the government’s long-term economic and fiscal policies saying that Bank of Japan will coordinate with other countries to consider CBDCs by examining and verifying technological tests. The social media giant Facebook’s efforts to launch its Libra cryptocurrency stablecoin have forced central banks across countries to look more seriously into issuing their own digital currencies. The central bank of Japan has been cautious about moving too quickly regarding its CBDC, given the legal barriers and social disruptions it may cause in a country that has the most cash-loving population in the world. The C2H positions across sectors have also increased amid the ongoing pandemic.
China all set to become the first major nation to issue a CBDC.
The People’s Bank of China has been working on its national digital currency from the last five to six years and is now quite close to issuing it to the general public. The ongoing COVID-19 pandemic has added momentum to calls for central banks to look into CBDCs more seriously, if more people avoid handling hard cash, and to move towards digital settlements. Earlier, the Bank for International Settlements had released a report saying that the COVID-19 pandemic has forced central banks around the world to accelerate their research into CBDCs.
