The Digital Yen plans by Japan’s CBDC development team is set to enter the second phase by 2022. The country has said it would have more clarity on what the digital yen would look like by then.
By the end of next year, Japan will have greater clarity on its CBDC product, the digital Yen.
The CBDC development, according to a lawmaker in charge of the ruling party’s digital currency plan, might signal the start of a turf war between traditional lenders and online platform owners.
By late 2022, the Bank of Japan will be moving into the second phase of its Central Bank Digital Currency (CBDC) experiment.
By working with peers, the first phase supported and enabled the rapid rise of private innovation. The next phase is expected to give new information about the functioning and intermediates of digital yen, such as the entity that will act as a liaison between the bank of Japan (BOJ) and depositors.
According to Reuters, Hideki Murai, the head of the ruling Liberal Democratic Party’s digital currencies commission.
“By around the end of next year, we’ll have a clearer view of what Japan’s CBDC would look like,” Hideki.”
Bank Of Japan is against the motion.
However, due to the current state of insecurity in Japan’s banking industry, the BOJ’s anti-motion stance is gaining traction.
With non-bank shops offering online settlement and entering the commercial bank areas, BOJ is wary of any potential changes brought on by the digital Yen.
Furthermore, for a good conclusion, BOJ must verify that the digital Yen is interoperable with the CBDC of other nations, not just Japan.
Nonetheless, the administration stated that there will be no imminent or unexpected changes to CBDC; however, debates about the financial implications of CBDC are ongoing.
“If the BOJ were to issue CBDC, it would have a huge impact on financial institutions and Japan’s settlement system…CBDC has the potential to completely reshape changes occurring in Japan’s financial industry.” Murai said.