Japan Lawmakers Want Digital Yen Discussion at G7 Summit

Friday, 07/02/2020 | 08:48 GMT by Arnab Shome
  • The Bank of Japan is already studying the prospect of a CBDC.
Japan Lawmakers Want Digital Yen Discussion at G7 Summit
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A group of Japanese lawmakers is suggesting the country issue a digital currency and raise this issue in the upcoming G7 summit.

Reported by Reuters on Friday, all the lawmakers are from the Liberal Democratic Party (LDP), the current political party in power, and is led by Akira Amari, a former economy minister.

The group will submit its formal proposal to the government next week.

The group is also proposing the Japanese central bank to collaborate with its United States counterpart to share information and conduct technical studies on digital currencies.

The report outlined that the lawmakers are concerned with China’s development in the field of central bank digital currency (CBDC) and launching a digital version of yuan.

“We live in a stable world led by dollar Settlement . How should we respond if such a foundation collapses and if [China’s move] gives rise to a struggle for currency supremacy?” Amari said.

“Japan should work in close coordination with the United States...As part of such efforts, we should ask the United States to set [digital currency] on G7 agenda as chair.”

Though Japan was in the backfoot in the arena of a digital currency for a long time due to technical and legal hurdles, the situation is now changing.

Central banks banking for digital currency

The Bank of Japan is leading a group of other top central banks, including its counterpart in England, eurozone, Canada, Switzerland, and Sweden, to study the feasibility of issuing a digital currency. The first meeting of the group has been scheduled for April.

Facebook’s attempt to launch Libra also raised the alarms of the central banks about the privatization of the monetary system and is pushing them to see the possibility of launching a centralized digital currency.

Meanwhile, the governor of the United States Federal Reserve recently revealed that it is also looking at the prospect of launching a digital version of the US dollar.

A group of Japanese lawmakers is suggesting the country issue a digital currency and raise this issue in the upcoming G7 summit.

Reported by Reuters on Friday, all the lawmakers are from the Liberal Democratic Party (LDP), the current political party in power, and is led by Akira Amari, a former economy minister.

The group will submit its formal proposal to the government next week.

The group is also proposing the Japanese central bank to collaborate with its United States counterpart to share information and conduct technical studies on digital currencies.

The report outlined that the lawmakers are concerned with China’s development in the field of central bank digital currency (CBDC) and launching a digital version of yuan.

“We live in a stable world led by dollar Settlement . How should we respond if such a foundation collapses and if [China’s move] gives rise to a struggle for currency supremacy?” Amari said.

“Japan should work in close coordination with the United States...As part of such efforts, we should ask the United States to set [digital currency] on G7 agenda as chair.”

Though Japan was in the backfoot in the arena of a digital currency for a long time due to technical and legal hurdles, the situation is now changing.

Central banks banking for digital currency

The Bank of Japan is leading a group of other top central banks, including its counterpart in England, eurozone, Canada, Switzerland, and Sweden, to study the feasibility of issuing a digital currency. The first meeting of the group has been scheduled for April.

Facebook’s attempt to launch Libra also raised the alarms of the central banks about the privatization of the monetary system and is pushing them to see the possibility of launching a centralized digital currency.

Meanwhile, the governor of the United States Federal Reserve recently revealed that it is also looking at the prospect of launching a digital version of the US dollar.

About the Author: Arnab Shome
Arnab Shome
  • 6359 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6359 Articles
  • 80 Followers

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