A political figure who is leading the digital currency plan for Japan’s ruling party believes that the country would get more clarity on what to expect from the digital yen by the end of the year 2022.
In April 2021, the first phase of the central bank digital currency (CBDC) project was initiated by the Bank of Japan. The country expects to start its second phase of the experiment next year, by introducing some important services like ‘which entity will serve as intermediaries between the BOJ and deposit holders.
On July 02, during an interview with Reuters, Hideki Murai, the head of the Liberal Democratic Party’s panel on digital currencies, said, “By around the end of next year, we’ll have a clearer view of what Japan’s CBDC would look like.”
Murai further mentioned that presently, the country would not hold any discussion on whether issue a CBDC, but when the details regarding its design would come out, it may spur debate on how the issuance of CBDC could affect the financial institutions.
Recently, non-banks retailers in Japan have started to venture into the domain of commercial banks by offering various online settlement means to the customers. This has brought in a massive change in the financial industry of the country.
Murai, in his interview, mentioned that the CBDCs issued by the central bank of the country would have a huge impact on the financial institution of Japan, as it will have the ability to reshape changes taking place in the industry.
He further specified that BOJ should design digital yen in a way that it gets compatible with other countries’ CBDC.