• Japan moves away from developing its own digital currency while the rest of the world moves forward
  • Other global central banks move in the opposite direction

The Japanese regulator explained that it had no plans to launch its own digital currency (CBDC) at this stage from considerations of ensuring the stability and efficiency of the payment and settlement systems.

The Bank explained its approach to "general purpose" CBDC in a document titled  "The Bank of Japan's Approach to Central Bank Digital Currency."

The Bank of Japan believes that it is unlikely that the cash in circulation would drop significantly, meaning that there is no need to speed up the launch of a new type of money. 

If private digital money will not substitute for the functions of cash sufficiently, the Bank might provide general-purpose CBDC as a payment instrument alongside cash. As long as there is public demand for cash, the Bank will stay committed to supplying it, the regulator explained. 

Notably, BOJ admits that the rapid development of information communication technology may lead to a surge in public demand for central bank digital currency (CBDC). However, the regulator does not see it as a pressing issue and finds it imperative to prepare thoroughly for the changes in circumstances.

China thinks differently

Meanwhile, its Asian neighbor is ready to literally drop its digital yuan on the citizens. The local media outlet reports that the Shenzhen government, together with the Central Bank, will distribute 10 million yuan of DECP to 50,000 residents, 3389 merchants in Luohu District. The citizens should install one of four DCEP wallets developed by the major four commercial banks to participate in the airdrop.

All the participants shall provide their details, including the ID and mobile phone number. The registration for the airdrop is open from October 9 to October 11. 

Europe stands ready

Europe also seems to be moving towards launching the digital euro. As the FXStreet recently reported, the European Central Bank considers developing the digital version of the single currency to make payments and money transfers more efficient.

Notably, the ECB emphasized that the digital euro will be fully backed and controlled by the regulator.

Canada, Brazil, Estonia are all in the CBDC boat

Other regulators are cautiously optimistic about launching their versions of digital currencies. As the FXStreet previously reported, Brazil plans to launch its coin in 2021.

Canada recently published a report devoted to CBDC risks; however, the Central Bank is working on its own coin since February. 


 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Ripple Price Prediction: XRP ready to make a comeback as bulls target $0.7

XRP, like the rest of the market, had a significant crash from its peak of $0.78 down to $0.456. The digital asset is currently trying to bounce back up, trading around $0.537, awaiting a clear breakout or breakdown from an ascending triangle on the 30-minute chart.

More Ripple News

Facebook plans to launch a limited version of its cryptocurrency Libra in 2021

The social media giant Facebook may launch its contradictory digital coin Libra as early as in January 2021, the Financial Times reports, citing knowledgeable sources.

More Libra News

Bitcoin show signs of a dead cat bounce while investors hope for prompt recovery

Bitcoin is hovering around $17,000 after a heart-breaking sell-off to $16,200 on Thursday. However, the industry experts warn that the downside correction has just started. 

More Bitcoin News

German finance minister calls for quick decisions on ECB's digital currency

Germany's finance minister, Olaf Scholz, said that Europeans should work very hard to come up with a solution for digital payments, as there is a massive demand for digital money from consumers and businesses.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES




Gold Weekly Forecast: XAU/USD tumbles to multi-month lows on risk flows, technical selloff

Bitcoin has lived through a roller-coaster week. The pioneer digital currency hit another multi-year high of $19,500 and got really close to the all-time high on Wednesday. 

Read the weekly forecast

BTC

ETH

XRP