Bank officials in Japan continue to express concern about China’s progress in developing a central bank digital currency.
Kenji Okamura, Japan’s deputy finance minister for international affairs, has warned the world about the potential risks of the Chinese digital yuan, Reuters reported on October 9.
Okamura said the Chinese digital yuan initiative is “moving forward at a relatively fast pace,” as the Chinese government appears to be aiming to become the first global jurisdiction to adopt the CBD.
“The first benefit of this feature is what we should be wary of,” Okamura said in a digital seminar supported by the Official Forum of Monetary and Financial Institutions, adding:
This feature lies in setting the standard for form design, as it is the first technology platform for developers (developers) to enable widespread use of the digital currency. ”
This news comes shortly after a Chinese magazine run by the country’s central bank announced that China should become the first country to issue a digital currency by mid-September 2020. In the article, the authors stated that the issuance and control of digital currency will be “new”. Battlefield “for competition between sovereign states.
While a number of countries are actively researching and implementing CBDC coins, it appears that China is winning the CBDC race at the moment. On October 5, the Chinese central bank officially announced the first results of the yuan’s digital pilot projects, indicating that it processed $ 162 million worth of CBDC transactions between April and August 2020.
Several global jurisdictions such as Sweden and the Bahamas have also launched tests for their digital currencies, according to Cointelegraph reports. However, these initiatives clearly lag behind the digital yuan as there have been no tangible results so far. The Bahamas still claims to be the first country in the world to launch a nationwide state-sponsored virtual currency after launching first tests in late 2019.
While it is difficult to determine who will truly win the CBDC world race, Japan has no plans to launch CBDC in the near future. In July 2020, the Bank of Japan officially announced the formation of a special group to study the development of central bank digital currencies, indicating that the bank did not plan to issue digital currencies to its central banks.