There seems to be a disagreement inside the prime echelons of Japan’s authorities on the menace that China’s CBDC poses to the nation. Simply final week, Kenji Okamura, vice-finance minister for Japan’s worldwide affairs voiced issues over its neighbor’s efforts in the house, stating “first-mover benefit is one thing we needs to be afraid of.”
At this time’s assertion from Kazushige Kamiyama, who leads the Bank of Japan’s (BOJ) CBDC efforts, seems to contradict this earlier sentiment. He stated that on the opposite, the first-mover benefit might simply flip into an obstacle, and that no single digital currency will dominate:
“I don’t assume a single digital currency will dominate the world, so long as every nation makes full efforts to enhance its settlement system.”
Kamiyama stated that the BOJ is intently monitoring the progress of different nations in the house, and is hoping to be taught from their efforts:
“We’d wish to hold tabs on what different central banks are doing and be taught from them, not simply from China however from different nations”.
He additionally stated that when and if the BOJ points a CBDC, there’s a chance that the financial institution will implement caps on the amount issued, and the way a lot of the asset entities would legally be allowed to carry. He steered that such restrictions could possibly be put in place with the intention to stop the flight of capital from business banks, elaborating that “It’s an possibility. However it’s not one thing we are able to say will undoubtedly occur.”
Whereas the CBDC race round the world is in full flight, the policymakers look like battling discovering the proper method to what stays a novel concept.