Japanese Ministry To Form Panel To Watch Over Digital Yen

The panel will help the finance ministry to prepare for a regulatory framework over the CBDC.
Japanese Ministry To Form Panel To Watch Over Digital Yen

The leading Japanese news broadcaster, NHK disclosed in its report that the Finance Ministry of Japan is in discussion to form an expert panel in April to watch over the feasibility of issuing a digital yen.

The new panel will help the Ministry to propose a regulatory framework for Japan’s Central Bank Digital Currency program entitled “digital yen”. Also, it will use data from 2-years of research on CBDC conducted by the Bank of Japan.

The Bank of Japan has launched a panel to explore the possible introduction of a digital yen, coinciding with the launch of a pilot program involving the BOJ, financial institutions, and private-sector participants. 

While BOJ officials have no concrete plans to issue a digital currency, the ministry plans to take into account the panel’s opinions and prepare for its possible introduction.

Central banks in Europe, the United States, and China are already exploring their CBDC currencies, with China being seen as the frontrunner with its digital yuan. The implications of digital currencies were highlighted when US tech giant Meta (formerly Facebook) announced plans to issue its own cryptocurrency, leading to concerns of money laundering and monetary instability.

The major Asian country, India is also preparing a plan to roll out its CBDC, following the launch of the first pilot for retail CBDC on December 01, 2022.

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