Japan has increased the development of a central bank digital currency (CBDC) to compete with China's digital yuan. Hiromi Yamaoka, a former senior official in charge of payment and settlement systems at the Bank of Japan (BOJ), told the Japan Times he is surprised with China's speed "as central banks tend to take a cautious stance."
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The Digital Currency Forum, according to Yamaoka, hopes to issue "some form" of digital currency, similar to Facebook’s Diem plan, by 2023. Masashi Nakajima, a professor at Reitaku University and a former BOJ official, says the finance industry is currently experiencing a "once-in-a-millennium change."
In the meantime, a member of Japan’s House of Representatives, Hideki Murai, emphasizes the country should intensify its engagement with cryptocurrency exchanges and financial institutions to be sure that its plan on issuing a digital yen will not crowd out the private sector.
Murai claims Japan should seek to "maximize the potential a central bank digital currency can offer." He also highlights the central bank's new product should not harm private business.
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