Recent advances in Japan regarding the issuance of a national cryptocurrency indicate that the country’s ruling party expects to launch the digital yen in the next 2-3 years.

Recent rumors about the launch of a digital currency by Japan were confirmed today. According to Reuters, Japan hopes to launch its digital yen in the next 2-3 years, placing the proposal on the discussion table for the current Japanese government. This was advanced to the aforementioned news media Kozo Yamamoto, head of the commission of financial investigation of the Democratic Liberal Party.

Legislators of the Democratic Liberal Party of Japan – the ruling party of the Asian country – said they were working on the proposal to issue a national digital currency. On that occasion, the proposal came from the political group led by former Minister of Economy, Akira Amari.

This Monday, Yamamoto said he would work with Amari to pressure the government to adopt the proposal, and said:

“The sooner the better. We will write proposals to include them in government policy guidelines, and we expect them to happen in two or three years.”

Digital Yen in the next 2-3 years

Project announcements for the creation of a national cryptocurrency by Japan come shortly after China reported that its new digital currency advances as planned. In this regard, some media have indicated that the recent announcement Yamamoto could indicate the pressure that Japan feels against China’s progress in digital currency.

In the past, some Japanese lawmakers have expressed concern about China’s movement to convert the yuan as a settlement currency in emerging economies. The French Minister Taro Aso said in January that it would be a “very serious problem” if the digital yuan became a popular means for international liquidation, as Japan liquidates transactions mainly in US dollars.

However, Japan is unlikely to launch its national digital currency in the near future, according to Reuters. In part, due to the new and strict rules for the cryptocurrency trade that the country announced they would begin to apply from 2020.

So far, Japan is maintaining a position in favor of issuing its own cryptocurrency; an initiative that would also help the country to change a culture based on cash. Also, last month, Japan joined five other major central banks to explore digital currencies.

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