The Central Bank and the Ministry of Finance decided to discuss issues related to the creation of a state-supported cryptocurrency.
The central bank, with its digital currency, is preparing to join the growing list of countries that want their central digital currency (CBDC). China remains closest to this goal. Today, more and more central banks are starting research in the field of digital coins and blockchain technologies.
Japan, which is one of the most open markets for innovation, can now receive additional momentum for the digital currency due to the favorable position of the government. According to the Japan Times, last month, the Ministry of Finance, the Bank of Japan and the Financial Services Agency (FSA) met to discuss the potential of the Japanese CBDC.
The meeting was attended by Yoshiki Takeuchi, Deputy Minister of Finance for International Affairs, Riozo Khimino, Deputy Head of the SSA for International Affairs, and Shinichi Uchida, Executive Director of the Central Bank for International Affairs. The Japan Times reported that their discussion focused on topics such as the impact of the CBDC on the dollar-dominated economy.
Bank of Japan Chairman Haruhiko Kuroda said earlier:
“I see progress in research and analysis from a technical and legal point of view [which will help us] so that we can move correctly when there is a growing need for it.”
The Bank of Japan has joined other monetary policy bodies that have shown interest in the digital currencies of the central bank, including the European Central Bank, Rikisbank, Bank of England and Bank of Canada.
Central banks sped up their CBDC study after Facebook announced it was working on the Libra project, its own digital currency. Fear of an undesirable influence on the markets by the company has led countries to decide to propose alternatives to LibraCoin.
The cryptocurrency community is still divided on the subject of CBDC. These assets can strengthen the position of blockchain technology in the market, show how effective it is, but at the same time undermine the main feature of the cryptocurrency – that they are decentralized, independent from the authorities and are not subject to any form of censorship.