There seems to be a disagreement throughout the high 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 considerations over its neighbor’s efforts within the house, stating “first-mover benefit is one thing we must be afraid of.”
At the moment’s assertion from Kazushige Kamiyama, who leads the Financial institution of Japan’s (BOJ) CBDC efforts, seems to contradict this earlier sentiment. He stated that quite the opposite, the first-mover benefit might simply flip into a drawback, and that no single digital foreign money will dominate:
“I don’t assume a single digital foreign money will dominate the world, so long as every nation makes full efforts to enhance its settlement system.”
Kamiyama stated that the BOJ is carefully monitoring the progress of different nations within the house, and is hoping to study from their efforts:
“We’d wish to preserve tabs on what different central banks are doing and study 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 urged that such restrictions may very well be put in place with a view to forestall the flight of capital from business banks, elaborating that “It’s an choice. However it’s not one thing we are able to say will certainly occur.”
Whereas the CBDC race all over the world is in full flight, the policymakers seem like battling discovering the best method to what stays a novel concept.