CBDC Soon to Be Considered a Part of Official Japanese Economic Plan
According to a July 14 Nikkei report, the Japanese government will include the Central Bank Digital Currency (CBDC) and the Japan Bank for International Development (JBID) in its formal economic plan. According to media reports, the Japanese government plans to consider the CBDC to coordinate with other countries.
The news comes on the heels of the Bank of Japan’s announcement to soon start experimenting with the digital yen to review its feasibility from a technical perspective and, therefore, to introduce it to the public.
According to Nikkei, the Honebuto Plan for Economic and Fiscal Revitalization will consider CBDC’s economic and fiscal policy. The Honebuto Plan is the foundation of Japan’s economic and financial systems. It is a critical element of the country’s fiscal and monetary strategy.
The Previous Plan
The plan, chaired by Prime Minister Shinzo Abe, was formulated by eleven members of the Finance Council, including the Bank of Japan (BoJ). Earlier, the United Nations Economic and Social Council and the International Monetary Fund (IMF) had urged Japan to implement the CBDC.
Investing and Overseas Support
The Japanese government will consider the CBDC to coordinate with other countries, “the report states. As China began testing its CBDC digital yuan, the Japanese government is accelerating preparations for its own CBDA. In the wake of the recent economic downturn, the turnaround in attitude has been crucial to CBDC as a viable alternative to traditional currencies.
As of July 2019, the Bank of Japan maintained that it had no plans to issue CBDC, despite the recent rise in interest rates and the rise of the yen.
In a report, this month, Masahiko Kojima, the Bank of Japan’s chief economist, announced that they would soon begin experimenting with the central bank’s digital currency in the next few months as part of their economic policy.
The Upcoming Times
According to the Nikkei, the Japanese government, not the Bank of Japan, has the right to judge whether it wants to issue CBDC. In February, a group of researchers from the University of California, Berkeley, and the Japan Institute of Technology ( JIT ) reportedly announced plans to collaborate to research the feasibility of issuing the digital currency and its potential use in the financial sector.
The group says it will release a report by the end of the year, which will be the first official report on the economic development of the CBDC in the People’s Liberation Army. The announcement of their inclusion shows how serious the discussion with Japan has become.
