Japan to launch digital yen
Against the background of the popularity of CBDC and the success in creating the digital yuan, many countries are interested in the creation of national cryptocurrencies. Among them is Japan
According to Hiromi Yamaoka, a former Bank of Japan employee in charge of payment and settlement systems, the need for a local currency is associated with many factors.
The main task is to reduce cash settlements against the backdrop of the COVID-19 pandemic. In this regard, Yamaoka, as chairman of the Digital Currency Forum, is actively involved in the popularization of the crypto yen.
Why Japan needs a digital yen
There are a couple of non-cash payment platforms in Japan. They are independent of each other. Their activities are incompatible.
With the digital yen, digital settlements can be standardized. The main thing is not to interfere with the creation of a unified infrastructure for mutual settlements in the country, on which private firms are working.
The Liberal Democratic Party (LDP) of Japan believes that the CBDC's job is not to squeeze out private business. You need to make the most of the potential of digital currency to make digital settlements easier and more practical.
The People's Bank of China, which plans to issue the digital yuan in 2022, has set the bar high in the crypto asset market. His example has pushed many countries to move to digital currency.
Interestingly, this happened at a tremendous speed, although banks are usually cautious. This means that national digital currencies have gained no less popularity than DeFi and FinTech. Once Central Banks have considered their potential.