- The Bank of Japan, The Finance Ministry, and the Financial Services Agency have joined forces to research and investigate the potential behind CBDC.
- Japan has been doubling its efforts with top officials, lawmakers, and regulators trying to throw in their two cents about building a stable coin.
- Countries like China and Sweden are already working on developing their own digital currencies.
Japan’s three major financial agencies: The Bank of Japan, The Finance Ministry, and the Financial Services Agency, have joined forces to research and investigate the potential behind central bank digital currencies (CBDC).
The government agencies have been purportedly conducting meetings to probe into the feasibility and utility for a central bank secured digital yen and the consequences such an asset would have on the current financial ecosystem.
The working group that has come together between the three agencies hope to put their combined efforts into in-depth research on the technical aspects of the development of a CBDC and the potential it could have to transform the financial landscape.
As the buzz around central bank digital currencies keep developing with multiple countries, large and small, running investigations into understanding whether digital assets backed by the government are good for the economy.
Japan has been doubling its efforts with top officials, lawmakers, and regulators trying to throw in their two cents about building a stablecoin.
It has been reported by Japanese news agency The Japan Times, that, during the last meeting between the government financial agencies, the Finance Vice Minister for International Affairs, Yoshiki Takeuchi.
The FSA Vice Minister for International Affairs, Ryozo Himino, and the Executive Director of the Bank of Japan, Shinichi Uchida, stated that the official authorities need to make a quicker decision on whether a CBDC needs to be issued.
Countries like China and Sweden are already working on developing their own digital currencies. Many financial analysts expect the first central bank digital currency to the market can have a highly disruptive impact on other traditional fiat currencies and might see huge gains in value.
The governor of the Bank of Japan has previously called CBDCs and crypto-assets challenges that need to be solved in order to secure financial stability in the country.
The trio hopes that the current research will help them attain a better understanding of the legal and technical requirements of implementing a government-backed digital asset and then further work on implementations when a need arises in the financial economy.
It was also recently reported that the Japanese Secretariat is conducting investigations into whether CBDCs and blockchain technology can further be used to develop the national infrastructure.