- China had already started conducting pilot runs for its Digital Yen in April 2020
- Japan too has decided to join the race and has accelerated its efforts in the development of CBDCs
The CBDC debate has been heating up quite some time now. Different countries are in the race to develop their own version of digital currency. China from the start has been pretty aggressive and wants the first one to reach the summit. Now Japan too has decided to join the race and has accelerated its efforts in the development of CBDCs.
China Journey So Far!
China had already started conducting pilot runs for its Digital Yen in April 2020. It was seven years ago that China officially gave the legal status to Bitcoins trading in 2013. Following that, the People Bank of China established a research group for the development of CBDC in 2014. The Chinese government may have changed their stance on the matter but the CBDC research group continued development of digital currency which eventually lead to the establishment of “Digital Currency Research Institute” in the year 2017. Soon after this Chinese government imposed a ban on ICO’s of several cryptocurrency-based companies which was later removed.
The ban led to various drastic changes from many crypto-based exchanges shifting to different nations to the market crash of the upcoming year were few of the results. Presently, China’s National Electric Government Network Management Centre deployed a Blockchain-based Service Network platform or BSN that simplified development of blockchain-based applications.
Japan’s Journey so Far
Japan may be years behind when the Bank of Japan announced the establishment of “Digital Currency Group” in July 2020. But as per the reports from Japan, they will soon be piloting the test for digital currency in few of their cities. The Financial Services Agency (FSA) of Japan recently hosted “The Blockchain Global Governance Conference” (BG2C) which was fourth in series. These blockchain round tables have been held since 2017 by FSA and Nikkie Newspaper. The conference was held in Tokyo and was mainly focused around the development of CBDC and was covered by many local as well as the world media.
Meanwhile, China has hosted similar conferences every month. In conclusion whenever these countries started developing national digital currency but presently they are competing to be the first nation to achieve the mark.