- Kozo Yamamoto has said this week that the country should start looking into a digital yen over the next two to three years.
- This is great for the crypto industry for many reasons no doubt however, whether the timeline is realistic or not remains to be seen.
The head of banking and financial systems research commission at the Liberal Democratic Party in Japan, Kozo Yamamoto has said this week that the country should start looking into a digital yen over the next two to three years. This is great for the crypto industry for many reasons no doubt however, whether the timeline is realistic or not remains to be seen.
According to reports on the 10th of February by Reuters, Yamamoto said that plans for its ‘essential’ digital currency should be included in the governments mid-year policy guidelines. He further went on to add that digital currency has the potential to quickly spread in emerging economies in giving a leg up in order to advance its digital market. Because of this, he went on to say that the development of digital yen must be swift:
“The sooner the better. We’ll draft proposals to be included in government’s policy guidelines, and hopefully make it happen in two-to-three years. [...] If each country manages to control flows of money with their own (digital) currencies, that could prevent a big swing at a time of crisis and stabilize their own economy.”
The words from the Japanese lawmaker follow those of the former economic minister and ruling party member Akira Amari, who said in the past that he wants to issue of central bank digital currency in order to counter Chinese upcoming digital Juan. Despite this, Yamamoto has admitted that even though the spread of interest in the central bank digital currencies could undermine the dollar’s grip, it could also stabilise emerging markets that rely on the dollar such as Cambodia.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!