Japanese crypto exchange, Fisco executive Takaya Nakamura, says that many of you must know that behind the establishment of the central bank digital currency, Japan played an important role. It is also accepted that Japan will look forward to establishing a digital dollar. Sooner or later, the Japanese government is planning to include the consideration of a central bank digital currency (CBDC) in its official economic plan. Although, Japan is still left behind China’s efforts with the digital yuan.
In the race of supremacy in digital currency globally, Takaya Nakamura suggested the Japanese government to urge the US for taking CBDC more seriously. As Japan does not have national power to make any decisions individually, Nakamura said: “Therefore, it is understandable if they want to collaborate with other advanced countries and have an influence on the development of digital currencies.”
The Bank of Japan has started researching thoroughly on digital currencies with the central banks of many countries. The countries included in this research are Britain, Europe, Canada, Sweden, and Switzerland. The central bank of the United States is not included in the coalition yet. Everyone knows Japan totally depends on the United States economically and as well as militarily. Most of the foreign currencies of Japan are reserves in US Dollars. Takaya Nakamura also pointed out that it is hard for Japan to lose the US Dollar. Nakamura said, “European countries may be thinking differently, but for Japan, they are not even prepared for CBDC, and that is not good. I think Japan would be hopeful for the United States to move forward and block the rise of digital yuan by the digitization of US dollars.”
In previous months, Jerome Powell, the Chairman of the Federal Reserve, has not told much upon the progress on the digital dollar. “If this is something that is going to be good for the United States economy and for the world’s reserve currency, which is the dollar, then we need to be there, and we need to understand it first and best.” These are the words of Jerome Powell before the House Committee on Financial Services.
According to Takaya Nakamura, China has become more aggressive towards the CBDC. This breaks the stronghold on the dollar, this leads to the remaining no choice for the United States. They have to move ahead on the digital dollar.