- Kamiyama will head the Payments and Settlement Department to carry out efficient research in issuing a digital currency
- The Bank of Japan along with other central banks is regarding the scope of Central Bank Digital Currencies (CBDCs) and intends to bring out its own digital currency
- The feasibility of the digital Yen will soon be tested by Japan over the next few months
Established on 27th June 1882, the Bank of Japan (BOJ) is regarded as one of the oldest banks in the world. Major reforms in the finance industry particularly led by digital currencies have led the bank to appoint more efficient people with relevant expertise. Its top economist, Kazushige Kamiyama will now head a department that oversees research on CBDC’s.
Aim To Keep Pace With Global Trends In CBDC
The Bank of Japan has conducted research with other central banks regarding the scope of central bank digital currencies (CBDCs) and plans to bring out its own digital currency. Under the prime leadership of its governor, Haruhiko Kuroda, the bank will begin experimenting with the concept of digital Yen which it did not have any plans for at the turn of the decade. Digital currencies have made remarkable developments around the world that have prompted the bank to include it in its roadmap.
The development of financial technologies and the in-depth knowledge possessed by Kamiyama will help in the smooth transition to digital currency adoption. On the other hand, experts feel that the security network will have to be strong as data breaches have risen in the recent past. Kamiyama will head the Payments and Settlement Department to carry out efficient research in issuing a digital currency at the earliest.
Blockchain Network Will Have To Be Studied More Closely
The pandemic has initiated a wave of demand for cashless payments for businesses, governments, and enterprises. Hence, it is crucial to implement a safe and sound blockchain network that is transparent and decentralized. The network has the potential to create a strong base for cryptocurrency payments across the country.
Furthermore, the government has requested the bank to speed up the process of implementing its own digital currency as the fiat version might soon lose its sovereignty. The feasibility of the digital Yen will soon be tested by Japan over the next few months before a decision is taken. Proposal for digital Yen is most likely to be placed under the Honebuto Plan for Economic and Fiscal Revitalization.