According to a Reuters report released on Friday, about 70 lawmakers from Japan's ruling party would work on a proposal to issue a national digital currency. This is an effort to counter the Libra and China's digital currency projects.
Parliamentary Deputy Foreign Minister Norihiro Nakayama told the news agency that the digital yen project would be develop jointly by the government and private companies, and would follow many similar initiatives around the world.
The ruling party group led by former Economy, Trade and Industry Minister Akira Amari plans to submit the proposal to the government in February.
The decision represents a cardinal change for the country, whose central bank officials saw 'no demand' for a central bank digital currency until December 2019.
Last year, the deputy governor of the Bank of Japan said that digital central bank currencies - often abbreviated to CBDCs - could 'erode the credit channels of commercial banks and have a negative impact on the economy'.
Norihiro Nakayama has stated 'China is moving towards issuing the digital yuan, so we would like to propose measures to counter such attempts,'[...].
'The first step would be to research the prospect of the digital coin,'
Written by: Laetitia Project Manager