Japan, one of the largest and most important economies in the world, is considering creating a CBDC digital currency to ensure the sovereignty of the Japanese yen.
According to several sources, in the media, the Government of Japan is seriously considering including the creation of a digital currency (CBDC) in the nation's economic roadmap, which guarantees the permanence, stability and sovereignty of its national currency, the Japanese yen.
The economic roadmap, called Honebuto, aims to chart the path toward economic and fiscal revitalization of the Asian country, which is why since the beginning of February, Japanese legislators have been asking the government to include the possibility of creating its own digital currency, following the steps that other nations have taken towards the digitalization of their economies through new technological innovations.
For example, in China and South Korea, governments are already taking giant steps towards the new form of finance. In this regard, China is already testing its CBDC currency. digital yuan within several cities and at the country's Agricultural Bank. Meanwhile, South Korea is implementing blockchain technology to create its own digital currency and launch a new authentication certificate system that will allow the country to advance in the development of its banking sector.
Likewise, other nations such as Lithuania, Spain, Canada, the United Kingdom, Australia and several others have shown interest in creating and implementing their own CBDC.
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The Japanese yen could be forgotten in the international economy
According to Kozo Yamamoto, a member of Japan's Liberal Democratic Party, the creation of a CBDC will prevent the national currency from being forgotten both domestically and internationally. Yamamoto said during an interview that:
"If Japan does not issue a digital currency and people in the world use other digital currencies, the Japanese yen will be forgotten and lose its sovereignty."
So, based on the fact that many governments are considering the development of a CBDC and several others are already implementing pilot tests on them, the Japanese government will include the proposal of a CBDC by the central bank to protect the sovereignty of its national currency, the Japanese yen; although it is well known that Japanese society is one of the most addicted to cash and that the government has been quite inflexible in the past regarding the possibility of digitalizing the economy. Even in July of last year, the Central Bank of Japan announced that they would not issue a CBDC. But now, in the framework of new technological innovations, Japan is preparing to meet national needs regarding the digitalization of payments and will verify the technical and economic feasibility of creating a digital currency.
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