Japan Prepares To Launch Its Own Digital Currency
The Bank of Japan is also preparing to jump on the cryptocurrency train, according to information quoted by the Japan Times. The BoJ, the Bank of Japan, is preparing to launch its own digital currency by 2023 and has already begun research on this issue.
Japan Designs Digital Currency
The BoJ is actually following in the footsteps of its neighbor China. China, which has been preparing for a digital currency called DCEP for almost four years, is known to launch it in 2021. Although Japan is not in a position to look very closely at digital currencies before 2020, this step shows that its managers ‘ minds have changed.
Hiromi Yamaoka, a former chief executive of Bank of Japan, was another name to point out that the bank has stepped up its digital currency operations. This is supported by private companies and banking giants, and will be made available not only to regular users, but also to corporate names.
Banks Warm To Digital Money
Yamaoka said a project was currently being carried out with more than 30 Japanese companies and working groups. Yamaoka, who expressed a warm view of the idea of digital money by banks, shared that among the institutions and financial companies in question are Mizuho Bank, MUFG Bank and others.
The Japan Times claims that BOJ officials will launch more detailed investigations into the CBDC from April next year. Yamaoka stated in the related article that Japan’s participation in the digital revolution with a digital currency will accelerate, and people will use this digital money directly from their smartphones.
People Don’t Use Physical Money
In fact, it is known that the physical use of fiat money in China and Japan has declined to very low levels. Apps like Alipay in China have led users to turn to apps directly instead of physical money. This is exactly one reason for China’s digital currency move.
In Japan, the popularity of similar payment applications is constantly growing. The Japanese authorities ‘ plans to launch digital currency may be based on the same reason as China. At a time when institutional investors are flocking to bitcoin, central banks ‘ start preparing digital currencies is seen as a fairly appropriate step.