The Central Bank Digital Currency race has been setting its mark globally. The latest nation to be hit with the trend is Japan, incidentally, the country that gave birth to crypto. Head officials at the Bank of Japan (BOJ), Ministry of Finance (MOF), and Financial Services Agency (FSA) are discussing whether the country should adopt a government-sanctioned digital currency. The meetings discussed the economic implications of the digital currencies on the economy of the nation and also stresses on the need to develop research on the technological sections of the digital currency.
Weighing the Odds
The latest meeting held last month saw Yoshiki Takeuchi, Vice-Minister of Finance for International Affairs; Ryozo Himino, FSA Vice-Minister for International Affairs; and Shinichi Uchida, BOJ Executive Director for International Affairs discussing the impact of digital currencies on the global currency system.
Digital currencies though stemmed with its share of advantages including reduction of cross-border financial transactions through remittances and settlements also include certain cases of online fraud like money laundering and digital scamming. The BOJ has not yet developed a full-proof safeguarding method but Haruhiko Kuroda, Governor of BOJ stated that Japan plans on advancing research specifically targeted on the technical and legal methodologies to address any issue whenever needed.
Developments Around the World
Just last month, the BOJ along with the European Central Bank, the Bank of England, the central banks of Canada, Sweden and Switzerland, and the Bank for International Settlements revealed plans to foster a joint study on cryptocurrencies. The summer of 2019 saw the government and the BOJ establish a liaison council on Libra, Facebook’s cryptocurrency. Japanese social media giant, Line, also released its cryptocurrency trading system, Bitmax, on 17 September. Bitmax would begin trading in five cryptocurrencies, including, Bitcoin (BTC), Ether (ETH), XRP, Bitcoin Cash (BCH) and Litecoin (LTC).