While the U.S. ramps up discussions of a digital dollar and China’s central bank digital currency (CBDC) draws near, Japan’s CBDC, otherwise known as the digital yen, is getting closer to its realization as well. Japan’s ruling Liberal Democratic Party member, Hideki Murai, explained in a recent interview this week that more clarity on the digital yen would be revealed next year.
Ruling Liberal Democratic Party Member Hideki Murai Says Clarity on the Bank of Japan’s CBDC Is Coming Next Year
In recent times, Japan has been discussing the creation of a digital yen and the country’s politicians have been mentioning the subject more frequently. In November 2020, the head of Japan’s Monex Group, Oki Matsumoto, told the press that a Bank of Japan (BOJ) issued digital version of the yen would “significantly enhance the interoperability of cryptocurrencies.” Monex Group purchased the Tokyo-based digital asset exchange Coincheck for $34 million in 2018.
Hideki Murai, Harvard graduate, former member of Japan’s Ministry of Finance, and the Liberal Democratic Party’s lead on digital currencies, says clearer information on Japan’s CBDC will be ready by late next year. In an interview with Reuters on Friday, Murai said that the digital yen wouldn’t “meddle in private businesses.”
“By around the end of next year, we’ll have a clearer view of what Japan’s CBDC would look like,” Murai explained during the interview. Even though Murai stressed that the CBDC will not meddle with the private sector, “more details on its design may spur debate on how CBDC issuance could affect financial institutions,” the Reuters report noted. Still, Murai emphasized that financial players may feel some impact from the digital yen.
“If the BOJ were to issue CBDC, it would have a huge impact on financial institutions and Japan’s settlement system,” Murai said. “CBDC has the potential to completely reshape changes…