Japan Uneased by Chinese CBDC, Plans on Digital Yen in ‘2 to 3’ Years

Bank of Japan vs. CBDC: A preference for cash

The Bank of Japan’s relationship with CBDCs can be traced back to April 2018, when the agency’s Deputy Governor Masayoshi Amamiya first addressed the topic publically. Although the tone of his comment was predominantly negative, the official did not rule out the possibility of considering the bank’s own cryptocurrency.

Chinese threat: New wave of interest in CBDCs among Japanese politicians

In 2020, a year that has already been remarkably eventful in terms of global crypto adoption, Japanese lawmakers returned to the idea of a CBDC. The wave of renewed interest was started by a parliamentary group comprised of around 70 members of the ruling Liberal Democratic Party who are alarmed about the prompt development of the digital yuan in neighbouring China.

Is Japan too late to the party? Experts think not

Jeff Wentworth, co-founder of Tokyo-based blockchain tooling startup Curvegrid, believes that issuing a digital yen would be a logical step for the local central bank. He told Cointelegraph that, “Every economy needs a CBDC, much as almost every economy made the move from paper money to electronic banking in the 1980s.” However, in Wentworth’s view, Amari might overestimate the influence of a China-issued CBDC, as its performance will likely depend on the currency’s design:

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