Japan’s Finance Ministry, Financial Services Agency, and BoJ To Research A CBDC Launch

Japan is the latest country to show interest in developing a central bank digital currency (CBDC) as the central bank, finance ministry and financial authorities meet to discuss digital currencies. As one of the top countries in crypto and blockchain development and regulation, accelerated efforts are being placed to develop an official digital coin to counter Libra’s influence in the global economy.

At the G20 summit held earlier in the year, financial ministers and central bank governors across the world gathered to discuss on issues pertaining digital payments and currencies and the impact on the global economy if the technology is implemented. Japan, one of the attendees took notes at the conference, and has started its plans on the possible launch of a digital currency governed in the country.

Japan’s government, financial authorities discuss CBDC development

During the weekend, Japan’s government officials, Bank of Japan (BoJ) officials, and Financial Service Agency (FSA) allegedly met to discuss the possible launch of a central bank digital currency, CBDC, in light of the financial and technological advancements today.

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 met in the latest discussion between the agencies.

The government and financial authorities have held a number of meetings in the past discussing the economic impact and technological developments needed for a CBDC. Some of the positives laid out includes the lower costs of transfer and a peer to peer remittances for Japanese citizens. However, there are challenges of money laundering and terror financing that looms above the p2p system.

Governments look to CBDC development

The growth of cryptocurrencies and digital assets adoption across the world is turning the heads of skeptical governments. China is one of the first governments to announce a launch of a CBDC with the overall response so far positive with over $12 Billion USD transacted on the blockchain.

Notwithstanding, a number of central banks in the world including the European Central Bank (ECB), Bank of Japan, the central banks of Canada, Sweden and Switzerland, and the Bank for International Settlements made plans to study CBDCs and its impact, with a possible start of development in the coming future.