The Asian continent has recently been offering numerous developments for the cryptocurrency field, especially for Bitcoin – enabling cheap and rapid mining – but also for other digital currencies. One of those countries is Japan, which is also one of the globe’s most technologically developed countries. Recent cryptocurrency advancements have impacted the country’s financial field as well.
Japan’s economy is already facing some major changes because the retailers started to offer various means of non-banking online payments, which poses risks to commercial banks. Another issue is the adoption of CBDC. For instance, Hideki Murai of the ruling Liberal Democratic Party’s digital currency group revealed to Reuters in an interview that the authorities will have a much clearer concept of what a CBDC will look like in the country by around the end of 2022.
Possible War Between Traditional and New
Murai also mentioned that the issue could potentially trigger a war between traditional lenders and operations of online payment platforms. He added that there would be no direct decision to launch a CBDC because of the uncertainty of its system and its effect on various financial institutions. Murai also pointed out issues concerning the Bank of Japan.
The fact that the Bank of Japan began its first phase of experimenting with a digital currency central bank (CBDC) back in April is already well-known. The second phase of the project is being prepared for next year. As per Murai, the question is whether the digital yen will sack or interfere with private businesses. The Bank of Japan’s problem with the CBDC would have a major impact on the country’s financial structure.
The political further added that the Bank of Japan should make sure that the digital yen is compatible with CBDCs of other developed nations to counter China’s swift progress in launching the digital yuan.