Bank of Japan to Roll Out Its Own Digital Currency Platform
In order to preserve the financial sovereignty, the major foreign central banks have stepped forward to carry out their own researches in digital currencies. This move came forth after Facebook launched its own cryptocurrency platform named Libra. This launch has triggered global competition among the major central banks that are now struggling to make their currencies more appealing.
According to the sources, the Bank of Japan (BOJ) will initially carry out its own research to analyze the various impacts that digital currencies can create on the economy of a particular country. It will also study the various technologies to steer the growth of digital currencies before rolling out its own digital currencies in the future.
BOJ, along with five other central banks namely, the Central banks of Britain, Canada, Euro Zone, Switzerland and Sweden and the Bank of International Settlements, have reportedly formed a group to share each other’s experiences about using digital currencies in their home jurisdictions. The reports released by each of them will then be compiled and released at the year-end. However, the discretion of issuing digital currencies will lie on each bank, instead of issuing a common digital currency. The banks unanimously agreed that this move would cool down the ever-growing debate about the future of digital currencies in each other’s home jurisdictions.
Facebook had not (by launching Libra) geared up the central banks to take such an important decision to issue digital currencies of their own; this move would have never been so ignited. This can be well fathomed by the speech given by the former BOJ head of settlement division, Hiromi Yamaoka, who said,
The latest decision (by the six central banks) is not just about sharing information. It’s also an effort to keep something like Libra in check. Something like Libra would make transactions costs much cheaper. Major central banks need to appeal that they, too, are making efforts to make settlement more efficient with better use of digital technology.