Japan’s CBDC plan will become clearer by the end of 2022

Reuters news Today (July 5), Hideki Murai of the Liberal Democratic Party said Japan will soon have a “clearer view” of a central bank digital currency (CBDC).

He also said the design of the CBDC could spark a debate about the impact of the spending on financial institutions. These concerns contrast with the bank’s conclusion that the digital yen will not affect private businesses as long as it is designed to do so.

According to Murai, commercial banks will benefit from changing the way banks control customer data and business processes.

“If the Central Bank of Japan (BOJ) issues a CBDC, it will have a huge impact on Japan’s financial institutions and payment system. CBDCs have the potential to completely reshape the changes in the Japanese financial industry. “

In March, the BOJ formed a liaison and coordination committee as it plans to conduct a “first test” or proof-of-concept phase in April. While the central bank stressed that it is not ready to implement CBDC yet, they are recent public comments from Hideki Murai show her willingness to get deeper involved.

China is currently the world leader in CBDC testing and implementation and is working on digitizing its local currency. They plan to use CBDC at the Beijing Winter Olympics next February.

However, the BOJ does not see this as a threat to the US dollar and its status as a global reserve currency, but is at least watching China’s plans with caution.

“If the digital yuan becomes so popular that it is widely used by tourists or becomes the main form of payment for trade, the relationship between the yen and the yuan could change,” he said.

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According to Coindesk

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