Bank of Japan sets condition for issuing a digital currency

Japan will abandon issuing a central bank digital currency (CBDC) if the idea does not win public support. Bloomberg reports, citing Kazusige Kamiyama, head of the Payment Systems Department at the local regulator.

According to him, authorities view CBDC as a way to improve the efficiency of the payment system and as a complement to cash, not a replacement. There is no final decision yet on issuing a digital asset.

“Ultimately, we cannot continue our work without obtaining sufficient understanding from the public,” Kamiyama said.

Authorities hope to expand access to a potential digital currency through fintech companies. Kamiyama noted that at this stage the regulator is determining whether it will require a special license.

Earlier, the Bank of Japan formed a working group to study CBDC and participate in joint research with regulators in other countries.

Earlier, the Philippine central bank assembled a similar group. Experts said there is a need for further study into the possibility of issuing a government digital currency.

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