June 7, 2023

Japan encourages G7 members to team up to study state cryptocurrencies

Representatives of the ruling Liberal Democratic Party of Japan urge G7 members to respond to plans to launch the digital renminbi by China through cooperation in the research of crypto assets.

Senior politicians from the rulingThe Liberal Democratic Party told Reuters that Japan should share information and technical research on digital currencies with the US and other G7 members. According to party representatives, this must be done in order to respond to the Chinese digital renminbi initiative. In their opinion, the state cryptocurrency of China is a serious problem for world domination of the dollar.

“We live in a stable world where calculationsare made in dollars. How do we react if such a foundation collapses and the Chinese initiative provokes a struggle for monetary dominance? ”Said Akira Amari, party chairman.

As chairman of the G7 this year, the US mustinclude digital currency on the agenda of the next meeting of the group, he added. Politicians have confirmed that a formal proposal calling for increased collaboration between G7 members in the field of digital currencies will be presented to the Japanese government next week. G7 members are expected to meet in Maryland this June.

Japan, like many other countries, inrelies heavily on the dollar settlement system, which allows its banks and enterprises to carry out operations around the world. Some fear that the Japanese economy could face significant disruptions if developing countries use the digital yuan instead of the dollar.

Governing Council Member This WeekUS Federal Reserve (FRS) Lael Brainard said the institution has become more loyal to the idea of ​​issuing digital currency by the Central Bank. Fed officials are concerned about private initiatives to issue global cryptocurrencies, such as Libra stablecoin, and the impact they may have on the global financial system.

Recall that in January first appearedinformation that members of the ruling Liberal Democratic Party of Japan plan to offer the country the issue of its own digital currency. In addition, last month, the Bank of Japan entered the new group of central banks to study the possibilities of state cryptocurrencies, and also announced that it could issue digital currency in the event of widespread demand.