China’s plans are a crypto-incentive for many states – even Japanese politicians say the government is aiming for an early CBDC start.
Japan’s central bank wants to follow China’s efforts
If one looks at the developments of the cryptomarket in the Land of the Rising Sun, these could almost be representative of the changes worldwide. Investigations against the management of the Mt. Gox platform are an example of the negative aspects, as in the case of Japan, there are now plans in many places for mandatory reporting by ICOs. There were also reports as early as the beginning of 2019 that the country was considering the possible release of Bitcoin ETFs. According to many analysts, a possible trigger for the latest plans is above all China’s involvement. It has been known for some time that the People’s Republic is not only examining the various options for using the Blockchain for business and politics. At the same time, the launch of a digital yuan by the responsible central bank is supposed to be imminent. On this point, Japan is rumoured to want to catch up.
Politics and business pull together in planning
In this context, Facebook’s plans for the Stablecoin Libra are also a reason, according to insiders, to pay more attention to a possible digital yen. Various major news portals reported in the middle of the week that Japan’s central bank was working on the development of a “Central Bank Digital Currency” (CBDC). This will add another member to the ranks of currency guardians who want to introduce their own tokens. Observers regard China’s concept as a kind of initial spark for Japan’s own ideas. The basis for the speculation is a statement by a representative of the group of 70 people involved in Japan’s legislation and responsible for planning. Norihiro Nakayama, as the liberal politician is known, private companies are involved in the implementation, in close consultation with government representatives.
China could be fastest in competition
On the other hand, there is no question of market maturity so far. As a result, Japan’s national digital currency is still in its infancy. The first step is to define regulatory conditions and a possible technical implementation. The group of politicians is headed by Akira Amari, who is a former Japanese minister of economics. In the coming months, proposals are to be developed on how Japan intends to react to currencies such as Bitcoin, Ethereum and other digital national currencies. Nakayama, by the way, confirms that the digital yuan is an important impetus for Japan’s own CBDC; after all, the increasing economic pressure from China must be countered with a suitable instrument. The only thing that is clear is that China is ahead of many other approaches, including those of the US central bank FED.