Digital Yen Now 'Top Priority' for Japan Central Bank, Says Senior Official

The comments mark a shift in priority for Japan as it seeks to counter the economic threat from regional rival China.

Jul 29, 2020 at 11:32 a.m. UTC
Updated Sep 14, 2021 at 9:37 a.m. UTC

As pressure mounts to catch up with rival China, a Bank of Japan (BoJ) official has said digital currencies are a "top priority."

  • Speaking to Japanese news outlet The Asahi Shimbun, Takeshi Kimura, departmental director-general, described the digital yen as a chief concern for the central bank.
  • The BoJ has been experimenting with a central bank digital currency (CBDC) but has so far said there are no plans to launch one.
  • The government said this month the launch of a digital yen would be considered as part of this year's legislative agenda.
  • A proposal from the ruling Liberal Democratic Party in June said China's global lead in CBDC development could become a national security threat.
  • Senior Japanese lawmakers have been calling on the government to step up research since February.
  • The Philippine central bank has also commissioned research for a CBDC, Governor Benjamin Diokno confirmed Wednesday. Results will be due sometime next month.

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