The Bank of Japan has said that a digital Yen is now its “top priority,” because the financial institution looks to catch up with the progress made by its counterparts in China. In comments made to news outlet The Asahi Shimbun, departmental director at the financial institution Takeshi Kimura said developing and launching a digital yen was now the bank’s primary concern.
The Bank of Japan has been experimenting with a financial institution digital currency [CBDC] and therefore the technology behind it. However, to date, the bank is yet to officially develop a digital currency, and there are not any imminent plans for a launch.
However, the Japanese government has indicated that it’s prepared to think about measures in support of a digital currency within the upcoming legislative program, which could pave the way for a more formal introduction.
The developments follow reports from China which consistently suggest the country is leading the planet in work on a digital currency. This, consistent with Japan’s Liberal Democratic Party , could ultimately pose a national security threat to the country, which involves advancing research efforts gathering pace.
Senior lawmakers in Japan are increasing pressure on the government since February of this year. With the financial institution now committed to bringing forward its work on the digital yen, it’s like Japan might be next to hitch the CBDC race.
The developments come at a time when central banks round the world are exploring digital currencies, and searching at ways of implementing digital payments into their economies.
Similar efforts within the Philippines also are underway, after the country’s financial institution commissioned its own research into CBDCs. Earlier in the week ,Central Bank of Philippines Governor Benjamin Diokno confirmed the bank was investigating the technology, which initial results from its findings would be published within the near future.