A group of lawmakers in Japan are reportedly working to create a state-issued digital currency. According to Reuters, one of the lawmakers said its creation was a direct response to Facebook‘s Libra and China’s digital yuan. [Read: Japan doesn’t want to fight…

A group of lawmakers in Japan are reportedly working to create a state-issued digital currency.
According to Reuters, one of the lawmakers said its creation was a direct response to Facebooks Libra and Chinas digital yuan.
[Read: Japan doesnt want to fight Facebooks cryptocurrency Libra on its own]
China is moving toward issuing digital yuan, so wed like to propose measures to counter such attempts, Norihio Nakayama, parliamentary vice minister for foreign affairs, told Reuters.
Indeed, Japanese lawmakers have spoken out against the digital yuan, saying that it would be a very serious problem if it becomes well-used for international settlements.
It seems details of a Japanese digital currency arent yet nailed down. However, it could be brought to life in a joint initiative between the Japan government and private companies.
The group devising the proposal is said to be handing over its plan next month.
Japan isnt expected to release its own digital currency anytime soon. There are substantial regulatory hurdles that it will have to overcome.
Indeed, if Facebooks Libra is anything to go by, we can expect a centralized digital currency to have to undergo considerable scrutiny before it takes off.
Of course, if its government backed that will help allay some concerns Libra has faced. Libra is run by a select group of big tech companies which arent always known for being trusted.
Were going to have to wait a lot longer to see how this one plays out, but its clear that central bank digital currencies are on their way, whether we need them or not.
Published January 24, 2020 — 14:38 UTC