2019 had a lot of interesting cryptocurrency and blockchain projects be announced and begin operations but few were as anticipated was groundbreaking as Facebook‘s libra project and also China’s upcoming digital yuan token. The reason they were so groundbreaking was because they were going to push cryptocurrency onto a scale of acceptance, adoption and attention that it had not previously received and in the case of China, it would likely spark a ripple effect in which many other nations of the world would feel compelled to create their own digital tokens in order to keep up.
Now, a major Japanese lawmaker has called for the country to begin the development of the Japanese yen as a digital token in order to compete with China.
Japan should look into the development and launch of their own digital yen in the next 2 to 3 years and this suggestion comes courtesy of the head of the banking and finance systems research commission at Japan’s Liberal Democratic Party, Kozo Yamamoto. According to Yamamoto, Japan should introduce the idea of digital token into its mid-year policy guidelines as the use of digital currency is spreading across the world, particularly in emerging economies. China, he says, will likely take advantage of this to increase their hegemony and Japanese needs to take action as a result.
“The sooner the better. We’ll draft proposals to be included in government’s policy guidelines, and hopefully make it happen in two-to-three years. […] If each country manages to control flows of money with their own (digital) currencies, that could prevent a big swing at a time of crisis and stabilize their own economy,” he says.
Yamamoto is not the only major Japanese official who has echoed these sentiments as Akira Amari, the former economy Mr. minister, has previously stated that Japan needs to act quickly in response to China’s upcoming token so that they do not get left behind. As previously stated, China’s decision to embrace digital currency on such a large scale is triggering a ripple effect among other nations and will likely set off a greater wave of cryptocurrency adoption across the globe.