Ministry of Finance of Japan, central bank digital currency ( CBDC) plans to set up a panel to examine the feasibility of the startup.
It was stated that the panel will be established to create a framework for a digital currency in addition to the work carried out for two years. Bank of Japan (BOJ)and other financial stakeholders, the digital yen pilot program is also planned to be launched at the same time.
Japan Plans to Lead Regulations
While BOJ officials have stated that they have no immediate plans to issue a digital yen, the finance ministry is taking steps to prepare for the possible introduction of such a currency.
This year G-7Chairman of the industrialized countries group JapanIt also plans to drive tougher global crypto regulations. KyodoAccording to the report published by Japan, G-7It aims to spearhead discussions on the regulation of digital currencies at the summit.
Japan’s switch to the digital yen could have significant effects on the country’s economy, which is largely cashless.
statistaAccording to a research report by 51.1 percentforms the . digital yenWidespread adoption could further reduce cash use and disrupt the country’s traditional banking system.
While Japan has been relatively open to cryptocurrencies in recent years, 2017in the year bitcoinofficially recognized as a form of payment. digital yenThe launch could lead to increased regulatory scrutiny and limit the use of other cryptocurrencies.
