According to NHK news Japan is getting closer to issuing a central bank digital currency (CBDC). CBDCs, also known as the digital yen, will be the subject of an expert panel study by the Treasury Department. According to the report, talks will begin in April 2023.
The ministry’s panel is likely to discuss developing a framework for a central bank-backed digital currency. They will use the outcome of a study conducted by the Bank of Japan (BOJ) over more than two years until this month. However, the BOJ has not yet decided whether Japan will issue a CBDC, even though the bank has been experimenting with the idea for two years.
What are the Japanese authorities saying about the CBDC project?
Finance Minister Shunichi Suzuki told reporters on Friday that the government is still exploring various methods to fulfill its commitment to consider the viability of a CBDC. The experimental program could take several years, according to the central bank. If the government were to release a CBDC for public use, some laws may need to be changed.
BOJ Governor Haruhiko Kuroda said they want to ensure the coexistence of CBDC with various other forms of money. In an effort to modernize financial institutions and accelerate domestic and international payments, central banks from several countries have stepped up their efforts to create digital currencies. Japan and other developed countries are trying to catch up with China, which is leading the global CBDC race and has accelerated the development of retail payment pilot programs.
In addition, the US Federal Reserve (Fed) has been researching a digital dollar that many have come to refer to as “Fedcoin.” According to Fed officials, elected officials should support the launch of such assets. India has also launched a pilot program for its CBDC initiative. In addition, the European The Central Bank is expected to make a decision on its plans for a digital euro sometime later this year.