Japanese lawmakers are drafting a plan that would allow the country to issue its own digital currency.
Reuters reports that a group consisting of 70 Liberal Democratic Party lawmakers are drafting a proposal to create Japan’s own virtual currency in response to Facebook’s Libra and China’s efforts to issue a digital yuan. According to Parliamentary Vice-Minister for Foreign Affairs Nohiro Nakayama,
“China is moving toward issuing digital yuan, so we’d like to propose measures to counter such attempts.”
Nakayama says the digital currency could be a joint venture between private companies and the government. The group plans to submit an official proposal as soon as next month.
Meanwhile, the Bank of Japan is joining five other central banks to initiate research on central bank digital currencies (CBDCs). As digital currencies continue to penetrate politics, Prime Minister Shinzo Abe recently announced that the government will collaborate with the country’s central bank to make the yen more convenient as a settlement option.
As the digital currency wars heat up, Japan’s Finance Minister, Taro Aso, is expressing his sense of urgency. According to Aso, if the digital yuan gains traction for cross-border payments, it would be a “very serious problem” for Japan which uses US dollars for international settlements.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Iaroslav Neliubov
