Advocation for the evolution of digital Yen has been on the rise and it might become a reality soon.
The recent is a lawmaker from the Liberal Democratic of Japan, Kozo Yamamoto, who is championing the cause.
He has advocated the need to create a digital Yen in the next few years.
Japan is known to be a country that supports technological innovations and now, they want Japan’s central bank digital currency to compete with China’s virtual Yuan and Facebook’s Libra.
According to Kozo Yamamoto, the digital currency situation should not be average, instead, it needs to thrive just like its Asian peers.
He stated that a draft proposal for a Japan central bank digital currency development would be featured in the next policy guidelines.
Japanese Yen needed to counter Chinese digital Yuan
The lawmaker noted that the Japanese authorities must see the need to build a digital Yen very soon.
The proposed draft will be encompassed in the upcoming government policy guidelines that will guarantee that Japan is CBDC prepared in the next few years.
Other lawmakers are embracing the idea of the digital Yen as well. They are recommending the production because of worries about Facebook’s Libra.
These group of Japanese lawmakers conveyed worries over the quick growth of China’s virtual currency and its influence on the world financial markets.
While noting that Japan’s former minister for the economy will be brought in for the project, Yamamoto said that he would create agreement in the government for the initiative.
Increased backing for a Japan CBDC warranted action
Of late, support has been on the rise in the Asian Country for a digital Yen, especially the Central Bank of Japan.
More young people are also clamouring for a national virtual currency regulated by the central bank, however, the regulatory and technical challenges must be conquered to make this come to pass.
Proposals, as mentioned by Yamamoto, show that authorities want to limit the increasing influence of China in the cryptocurrency realm.
It holds optimistic impressions about CBDCs.
According to reports, it also worked alongside other main central banks of the world to examine this theory further.