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Post: Bank of Japan and Japanese Government Discuss Central Bank Digital Currency (CBDC): Legal Issues and Potential Launch Timeline

Bank of Japan and Japanese Government Discuss Central Bank Digital Currency (CBDC): Legal Issues and Potential Launch Timeline

Key Points:

  • The Bank of Japan (BoJ) and the Japanese government have held their first official meeting to discuss the central bank digital currency (CBDC).
  • The government and the BoJ aim to resolve the legal issues surrounding the issuance of a digital yen by spring 2024.
  • The official launch of the digital yen has not been confirmed, and a decision will be made after national discussions, potentially in 2026.
  • In December 2023, an expert panel recommended the BoJ to issue a digital yen without delay, with a focus on coexisting with cash and minimizing personal data storage.

Further Details:

Japan’s central bank, the Bank of Japan (BoJ), and the country’s government have had their first official meeting to discuss the development of a central bank digital currency (CBDC). The meeting resulted in an agreement to address the legal challenges associated with issuing a digital yen by the spring of 2024.

However, it is important to note that the official launch of the digital yen has not been confirmed. The decision regarding the launch will be made after “a national discussion” and is unlikely to happen before 2026.

A report from an expert panel in December 2023 recommended the BoJ to move forward with issuing a digital yen without delay. The panel suggested that the digital yen should coexist with cash and that the BoJ should prioritize minimizing the storage of personal data.

Hot Take:

While the Bank of Japan’s meeting with the government marks a significant step in the development of a digital yen, it is clear that Japan is taking a cautious approach. The decision to launch the digital currency will involve careful considerations and national discussions. Japan’s focus on coexistence with cash and privacy protection reflects its intention to strike a balance between innovation and preserving the existing financial system.


Original article: https://cointelegraph.com/news/japan-cbdc-issue-legal-by-q3-2024

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