Breaking: Japan ditches plans on developing its own cryptocurrency
- 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.
Shenzhen gov started a DCEP Airdrop to anyone who’s in Shenzhen.. just need download a DCEP wallet , there are four wallets developed by the major 4 commercial banks pic.twitter.com/Zax4mq3ree
— Molly (@bigmagicdao) October 9, 2020
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.
Author
Tanya Abrosimova
Independent Analyst
