The head of payments for the Bank of Japan (BOJ) has dismissed the possibility that China’s digital yuan could undermine the U.S. dollar’s status as the world’s reserve currency, according to a Bloomberg report.
- “The dollar’s status as the key global currency won’t change so easily,” Kazushige Kamiyama was quoted as saying. “In fact, the dollar’s advantage may strengthen further if the U.S. goes with digitalization.”
- On Sunday, the publication reported the Biden administration is troubled by the long-term effects a digital yuan may have on the dollar’s status.
- U.S. officials have been ramping up their efforts to understand how the digital yuan will be distributed and how it may impact trade sanctions.
- So far, China is leading major nations in the development of a central bank digital currency (CBDC), with the People's Bank of China (PBoC) making rapid progress through pilot projects.
- Recently, PBoC Digital Currency Research Institute Director Mu Changchun openly discussed the digital yuan and the need to address privacy issues.
- On April, 5 the BOJ announced it had kicked off the first phase of experimenting with its own CBDC.