A group of ruling party lawmakers said Japan should prepare to issue its own digital currency and propose to bring up relevant topics at this year's G7 meetings.
Akira Amari, a senior official of the Liberal Democratic Party (LDP), a member of the House of Representatives, shared with reporters that the group will present its proposal to the Japanese government next week.
Although Japan is unable to soon issue cryptocurrencies due to technical and legal barriers, this move shows that Tokyo is increasingly pressured to pursue the progress that China is making to digitize their yuan.
A group proposal suggested that Japan should contact the US to share information and conduct technical studies on cryptocurrencies, the US is also the rotating chairman of G7 meetings - an organization. gathers 7 countries with the largest developed economies in the world.
Amari said in a meeting of the group about completing this proposal, “we live in a stable world dominated by the dollar, how do we respond if such a platform collapses? and if China's move creates the ultimate competition for dominant currency? ”.
According to Reuters, some Japanese lawmakers feel that China's (based on yuan) cryptocurrency is pursuing possible growth in emerging economies and threatening the US dollar's hegemony. Now, this will adversely affect Japan as their economy is heavily dependent on the US dollar.
Central Banks around the world are quickly speeding up the issuance of their own digital currencies, also known as CBDC.
The Bank of Japan has carried out a joint research project with the European Central Bank, but said it has no plans to release CBDC in the near future.
Besides, the fact that a technology giant like Facebook is promoting the development of cryptocurrencies Libra has raised questions about how countries will continue to control their currencies in the coming decades?
See also: China begins testing of DCEP digital currency issuance