Japan should create its own digital currency in the next two to three years, according to Liberal Democratic Party Lawmaker Kozo Yamamoto.
A Japanese Cryptocurrency: 'The Sooner The Better'
Yamamoto wants Japan to create its own digital yen currency.
“The sooner the better. We’ll draft proposals to be included in the government’s policy guidelines, and hopefully make it happen in two-to-three years,” he told Reuters.
A group of lawmakers led by former Economy Minister Akira Amari has also made similar proposals. The group expressed the need to create a digital yen to counter regional rival China’s attempt to issue its own brand of cryptocurrency.
China's Cryptocurrency Push
China’s President Xi Jinping has prioritized the digital yuan as a prime innovation goal.
In October 2019, Xi announced his intentions at a Politburo Committee session.
“We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation.”
The comments by Xi prompted the enactment of a framework for the creation of the digital yuan.
The new currency is now ready for a trial.
Japan, as well as other countries, want to counter the effect of China’s digital currency moves.
Norihiro Nakayama, LDP member and Japanese vice minister for foreign affairs said: “China is moving toward issuing digital yuan, so we’d like to propose measures to counter such attempts.”
Facebook Inc.’s FB Libra digital currency is also driving countries into developing their own digital currencies.
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