Bank of Japan journey to a digital currency begins with the launch of a Digital Currency Group
|- The central bank in Japan establishes a digital currency group to study the possibility of digitizing the yen.
- The BoJ chooses the approached the CBDC subject with caution but is aware of its benefits as well.
The Bank of Japan (BoJ) has started the formation of a “Digital Currency Group.” The group will operate under the umbrella of the Payment and Settlement Systems Department to hasten the research on central bank digital currencies (CBDCs).
The new direction comes in support of the group formed among five other central banks in January that continues to look into the avenues of digital currency payments. The BoJ also established a research group in the same department in February. The two groups have continued to share opinions using local experts.
The group has now been elevated to the status of a “Digital Currency Group” with the purpose of studying digitization of the yen and the potential CBDCs carry in general. The group is under the leadership of Akio Okuno, deputy director-general at the Department and the former head of the policy planning division in the Monetary Affairs Department.
The BoJ has on several accounts said that it has no plans of issuing a digital currency. However, its actions suggest otherwise. The central bank is choosing to approach the matter with vigilance because the deputy governor, Masayoshi Amamiya said in February that CBDCs could hurt private business and even discourage innovation.
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