July 22, 2024

Japanese MP calls for the release of state cryptocurrency in the next 2-3 years

A spokesman for Japan's ruling Liberal Democratic Party called for speedy development and releasedigital yen. In his opinion, this should happen in the next 2-3 years.

Head of the Commission for the Study of Banking andfinancial systems of the Liberal Democratic Party of Japan Kozo Yamamoto said that the country should issue a digital yen in the next two to three years. As Reuters reported, Yamamoto said plans for a digital currency from Japan's central bank should be included in government guidelines by mid-year.

He explained that digital currencies could quicklyspread to emerging economies and help China, which is working on its own cryptocurrency, achieve dominance in the field. According to Yamomoto, this is why the development of the digital yen must be fast:

"The sooner, the better.We will prepare proposals for inclusion in government guidelines and hope that this will happen in two to three years. […] If each country manages to control the flow of money with its own digital currency, it could prevent large swings during a crisis and stabilize countries' economies."

Yamamoto's remarks echo those of the formerEconomy Minister and ruling party chairman Akira Amari, who previously said that Japan should issue its own cryptocurrency to counter China's plans. While the rise of government-owned cryptocurrencies could undermine the dollar's dominance, it could also stabilize markets in developing countries such as Cambodia.

Let us recall that recently representatives of the rulingJapan's parties have called on G7 members to respond to China's plans to launch a digital yuan by collaborating on crypto-asset research. Additionally, last month the Bank of Japan joined a new group of central banks to explore the possibilities of government-owned cryptocurrencies and also said it could issue a digital currency if there is widespread demand.