Japan is progressing toward the launch of its central bank digital currency (CBDC), the digital yen, with the government and the Bank of Japan (BoJ) working on the legislative framework. While neither the BoJ nor the government has officially committed to a CBDC launch, they are accelerating development, possibly in response to China’s progress with its digital currency. The recent meeting on the CBDC’s system design discussed future points of contention and legal issues, with a focus on building the legal framework well ahead of a potential rollout. The goal is to finalize the list of necessary legal amendments by spring.
Japan’s move toward a digital yen reflects the global trend toward CBDCs and the competition among nations to advance digital currency projects. The legislative groundwork is crucial for a smooth launch and integration of the digital currency into the existing financial system. The commitment to a two-tier structure involving commercial banks aligns with efforts to leverage existing financial infrastructure while exploring opportunities for private businesses to participate. As countries worldwide explore digital currencies, Japan’s progress adds to the momentum shaping the future of digital finance. (Source:cryptonews)
