Japan is preparing for digital currency, in line with China and others.
Japan is preparing to issue digital currency in both the public and private sectors following swift moves by China and other countries to do the same.
Virtual money issued by central banks worldwide is called “central bank digital currency” or CBDC and is used for cashless payments via smartphones or electronic cards. Some private companies, including one established by Facebook Inc., also plan to introduce their digital currencies.
Digital currencies differ from credit cards and cashless payment services as they are expected to provide retailers with commission-free payment systems. Users can settle store payments and quickly send money to others via smartphone apps.
The People’s Bank of China is one of the leading issuers of CBDC.
Yamaoka’s Digital Currency Forum plans to start a feasibility study for its virtual currency next year, aiming to bridge the existing cashless payment services and boost interoperability by offering their “common” digital currency.
Yamaoka said the consortium hopes to create “some form” of digital currency, similar to Facebook’s Diem plan, by 2023 while seeking collaboration with the BOJ to develop technologies if possible.
“Japan would lag behind other countries if we take a wait-and-see stance until the rollout of the BOJ’s CBDC,” said Yamaoka, stressing that his consortium will aim to match the innovation for digital currencies in the world, even though the BOJ will take several years to issue its CBDC.
“We hope Japan leads (other major countries) for digital currency.”
The original article is published by The Japan Times at https://www.japantimes.co.jp/news/2020/12/24/business/economy-business/japan-digital-currency/