Japan’s interest in a digital yen went up a notch after the government included it in its official economic plan. Japan has also been doing extensive research.
The Bank of Japan has been exploring the technical feasibility of a CBDC and in its latest paper; it dives into offline usage for those without smartphones.
Mercedes will use blockchain to track carbon emissions as Ditto Music & PSG soccer club launch blockchain projects. Singapore has also ventured into regulations.
While the Bank of Japan had no immediate plans for a CBDC, it was “very important” for the central bank to be prepared should the need arise.
Governor Haruhiko Kuroda said there was no reason to issue a central bank digital currency in the current climate.
Speaking about Facebook Libra specifically, Bank of Japan Deputy Governor Masayoshi Amamiya said it was important to bear in mind “the potential global user-base could be enormous.”
Facebook’s plans for Libra have been met with a further setback today, after the central bank of Japan called for “global cooperation” in regulating the stablecoin.
Bank of Japan, the country’s central bank, said Libra would be difficult to regulate, and ultimately posed risks to the global financial system.
While Bank of Japan has no plans for a CBDC at this time, the bank’s new report points out the additional functions crypto offers beyond traditional payments, as well as the wider implications of more efficient, direct blockchain transactions.