Japan is set to create a panel of experts to explore developing and regulating a potential digital yen, reports revealed.
News outlet NHK wrote in its report the Japanese Finance Ministry hopes to develop a central bank digital currency (CBDC) framework based on a Bank of Japan (BoJ) technical study.
Despite this, the BoJ has said it has no “concrete plans” to launch a digital currency and would need time to outline “legal and framework issues” to create it, the report read.
It will also review opinions of the future panel prior to creating and introducing the digital yen, the report added.
The news comes as numerous global governments explore CBDCs. The United Kingdom has begun exploring frameworks and regulations for a digital pound. Further plans to amend its Financial Services and Markets Act (FSMA) 2000 are likely to enter force later in 2023.
Japan, South Korea, the United States, India, and the European Union have also entered the race to create CBDCs. Financial services and tax giant Moody’s has stated that CBDCs would diversify spending options for users and limit banking institutions and their role in the future.
Conversely, China has rolled out several iterations of its digital yuan programme for shoppers across the mainland. Recently, AliPay and WeChat Pay have facilitated payment systems for the rising digital state-backed cryptocurrency.
