Japanese ruling party official says digital yen clarity will be revealed in 2022 – Bitcoin News
As the US fuels discussions about a digital dollar and moves closer to China’s central bank digital currency (CBDC), Japan’s CBDC, also known as the digital yen, moves closer to its realization. Japan’s ruling Liberal Democratic Party member Hideki Murai said in a recent interview this week that there would be more clarity about the digital yen over the next year.
Liberal Democratic Party ruling Hideki Murai says clarity will come next year on the Bank of Japan’s CBDC in Japan
Recently, Japan is debating the creation of a digital yen and the country’s politicians are raising the issue more often. In November 2020, the head of Japan’s Monex Group, Oki Matsumoto, told the press that a digital version of the yen issued by the Bank of Japan (BOJ) would “greatly improve the interoperability of cryptocurrencies.” Monex Group bought Tokyo-based digital asset exchange Coincheck for $ 34 million in 2018.
Hideki Murai, a Harvard graduate, former member of Japan’s Treasury Department and leader of the Liberal Democratic Party on Digital Currency, says clearer information about Japan’s CBDC will be in place by the end of next year. In an interview with Reuters on Friday, Murai said the digital yen would not “interfere” with private companies.
“By the end of next year we will have a clearer idea of what Japan’s CBDC would look like,” Murai said during the interview. Although Murai insisted that the CBDC will not interfere with the private sector, “more details about its design could fuel debate about how the issuance of CBDC might affect financial institutions,” according to the Reuters report. Still, Murai stressed that financial players could potentially feel some effects from the digital yen.
“If the BOJ were to issue CBDC, it would have a huge impact on financial institutions and Japan’s settlement system,” said Murai. “CBDC has the potential to completely reshape the changes in Japan’s financial industry.” Murai also discussed the relationship between Japan’s theoretical CBDC and the digital yuan produced by the People’s Bank of China (PBOC). He added:
When a digital yuan becomes so convenient that it is widely used by tourists or becomes an important means of payment for trade, the relationship between the yen and the yuan could change.
Murai concluded that the digital yen must be able to mix with CBDCs developed by other nation states. The Liberal Democratic Party leadership on digital currencies mentioned China’s rapid progress on the digital yuan. China’s CBDC is developing rapidly, and just recently the Beijing and Suzhou Railways announced that they are now accepting digital yuan payments for fares.
In the US, the Federal Reserve announced at the end of March that it would present digital dollar prototypes in July. The Fed’s vice chairman of oversight and the chairman of the Financial Stability Board (FSB), Randal Quarles, also recently spoke about the digital dollar. However, Quarles’ view of a digital US dollar was very different from Murai’s vision of a Japanese CBDC.
While Quarles said a US CBDC could pose a risk to the US banking system, Murai said a digital yen could potentially move data and business solutions back into the Japanese banking system.
What do you think of Hideki Murai’s comments on a clearer picture of a digital yen in late 2022? Let us know what you think on this matter in the comments below.
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