Japan needs its CBDC Now - Liberal Democratic Party Official

• With the coronavirus spreading at full length, the financial turmoil resulting from it is growing at an alarming rate. 
• Because of this, many companies all across the world are looking into central bank digital currencies as their next move in response to the disease and its impact on the economy.

With the coronavirus spreading at full length, the financial turmoil resulting from it is growing at an alarming rate. Because of this, many companies all across the world are looking into central bank digital currencies as their next move in response to the disease and its impact on the economy.

Speaking in an interview with Cointelegraph Japan, the Liberal Democratic Party member of the House of Representatives, Kozo Yamamoto argued that Japan should be implementing central digital currency now rather than later.

Yamamoto highlighted the three traditional roles of finance - a medium of exchange, a store of value and a unit of account. He further says big corporations such as Facebook should be able to issue such tokens and control the medium of exchange and store of value.

Yamamoto further went on to highlight that the unit of account must be controlled by the government itself. This would ensure that people don’t forget about traditional Fiat currency. 

He further went on to say:

"We must protect it (the role of a unit of account) no matter what. If Japan doesn't issue a digital currency and people in the world use other digital currencies, the Japanese yen will be forgotten and lose its sovereignty." 

One of the things that Kozo highlighted as well was that a digital yen could act as a sort of bridge currency between it and other cryptocurrencies. Even with other companies such as Google and Apple issuing their own tokens, he said that they will be used within their own industries. With a central bank digital currency, the gap would then be filled. 

He added:

"It is easiest for operators to use just one currency but for customers it is inconvenient."

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!