newsdog Facebook

Japan Is Getting Serious About Central Bank Digital Currency (CBDC)

Coin Codex 2020-07-29 21:18:00

Key highlights:

  • The Bank of Japan is treating its CBDC considerations as a priority issue
  • A BOJ official said that accessibility and resiliency would be the key properties of a potential CBDC
  • The central bank of the Philippines is also exploring CBDCs

Japan is getting serious about central bank digital currency

Japan is getting serious about central bank digital currency (CBDC), according to a report by Japanese national newspaper The Asahi Shimbun. The report cites Bank of Japan (BoJ) official Takeshi Kimura as stating that work on a potential CBDC will be one of the BoJ’s priority issues, with the central bank moving the project “beyond the preparatory stage”. This next phase will involve “substantive testing” of a potential digital currency.

Kimura also stated that his department will work with private sector companies who could provide their technical expertise to the BOJ’s CBDC considerations. 

Even though the BOJ is considering the creation of a CBDC more seriously, it’s not yet a given that the Japanese central bank will eventually actually launch a CBDC for public use. According to Kimura, there would have to be a decline in the usage of physical currency, and the CBDC would have to demonstrate that it is highly resilient and universally accessible, just like cash. 

The idea of central bank digital currencies has been gaining more and more legitimacy across the globe, and the exploration of CBDCs seems to have been accelerated by China’s impressive progress on their own CBDC project, DC/EP, as well as the announcement of the Facebook-led Libra project. 

Notably, a policy committee from the Japan’s ruling Liberal Democratic Party has stated that China’s lead in the CBDC race could constitute a national security threat.

The CBDC concept is also gaining traction in the Philippines

In addition to the CBDC news from Japan, a new report from Bloomberg indicates that the Philippines is also starting to consider a potential CBDC. According to the publication, the country’s central bank BSP has created a new committee tasked with studying digital currencies and the implications they could have on national policy. The initial results of the new BSP group’s study are expected to be released in August. 

Benjamin Diokno, the governor of the BSP, recently expressed his support for a blockchain-powered application for investing in bonds. 


Japan Is Getting Serious About Central Bank Digital Currency (CBDC)

10 hours ago | Peter Wind

Key highlights:

  • The Bank of Japan is treating its CBDC considerations as a priority issue
  • A BOJ official said that accessibility and resiliency would be the key properties of a potential CBDC
  • The central bank of the Philippines is also exploring CBDCs

Japan is getting serious about central bank digital currency

Japan is getting serious about central bank digital currency (CBDC), according to a report by Japanese national newspaper The Asahi Shimbun. The report cites Bank of Japan (BoJ) official Takeshi Kimura as stating that work on a potential CBDC will be one of the BoJ’s priority issues, with the central bank moving the project “beyond the preparatory stage”. This next phase will involve “substantive testing” of a potential digital currency.

Kimura also stated that his department will work with private sector companies who could provide their technical expertise to the BOJ’s CBDC considerations. 

Even though the BOJ is considering the creation of a CBDC more seriously, it’s not yet a given that the Japanese central bank will eventually actually launch a CBDC for public use. According to Kimura, there would have to be a decline in the usage of physical currency, and the CBDC would have to demonstrate that it is highly resilient and universally accessible, just like cash. 

The idea of central bank digital currencies has been gaining more and more legitimacy across the globe, and the exploration of CBDCs seems to have been accelerated by China’s impressive progress on their own CBDC project, DC/EP, as well as the announcement of the Facebook-led Libra project. 

Notably, a policy committee from the Japan’s ruling Liberal Democratic Party has stated that China’s lead in the CBDC race could constitute a national security threat.

The CBDC concept is also gaining traction in the Philippines

In addition to the CBDC news from Japan, a new report from Bloomberg indicates that the Philippines is also starting to consider a potential CBDC. According to the publication, the country’s central bank BSP has created a new committee tasked with studying digital currencies and the implications they could have on national policy. The initial results of the new BSP group’s study are expected to be released in August. 

Benjamin Diokno, the governor of the BSP, recently expressed his support for a blockchain-powered application for investing in bonds.