Since most governments are now honest enough to agree that blockchain will revolutionize the financial system. A lot of them are trying to implement their plans towards having their respective Central Bank Digital Currencies (CBDC).
This includes Sweden and the Bahamas. Even China is hoping to have her centralized digital currency ready by next year’s Olympics.
But the latest development is the progress of Japan concerning CBDC. Japan is working towards having a digital yen that would serve her citizens.
While she has not issued it, Japan is sponsoring a lot of research to see how best to design, regulate, and implement a CBDC. This is necessary so there would be a balance in terms of blockchain innovation and traditional financial services; without one hurting the progress of another.
Today, the Reuters reporters published a short interview they had with Hideki Murai who is the head of the Japanese ruling party – the Liberal Political Party.
In his address, Hideki explained that the Bank of Japan is working towards “having a clearer view of the CBDC by the end 2022.” The research made between now and the tail end of next year will give clarity on trajecting the new Yen CBDC.
Earlier this year, the Bank of Japan has started the first stage of its CBDC which bothers on private innovation. But as from next year, it would center much on which entity would facilitate CBDC between the citizens and the Bank of Japan.
Something more like an intermediary. On that, the preferred option of the Japanese government is to see how the commercial banks will fill the technicalities of this intermediary role. But if that’s not feasible, they would explore other means.
Not only that, the second phase will also be about the general functionalities of the proposed Yen CBDC.
With the look of things, there is more blockchain-related innovation to come from Japan. The keen brainstorming and research to have a centralized digital currency is a good step towards having a more inclusive financial ecosystem.