Japan’s government is seriously considering issuing a CBDC
According to the reported by Nikkei on July 15, the Japan’s government will include the central bank digital currency (CBDC) plan in its policy framework this year. The inclusion of such a plan in Japan’s policy framework would make it official government policy.
Japan is looking to explore the possibility of issuing CBDC in coordination with other countries, such as the U.S. and Europe.
CBDC (Central Bank Digital Currency) is the digital form of a fiat currency of a nation or territory and is issued and regulated by the competent monetary authority of that country. Theoretically, CBDC creates a new digital mechanism to solve the problem of real-time transferring of money between two parties, thus helping international transactions to happen easily without intermediate steps like in traditional bank transactions.
Japan has been known to research CBDCs for a while. In January, the BOJ partnered with five other major central banks — the Bank of England, the Bank of Canada, the European Central Bank, the Sveriges Riksbank (Sweden), and the Swiss National Bank — to explore digital currency.
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