Japan’s Financial Authority Considers National Cryptocurrency

Japan’s financial authority is speeding up the process of creating its own cryptocurrency. The Ministry of Finance, the Bank of Japan and the Financial Services Agency have held an unknown number of meetings in order to determine a clear vision before the eventual launch of a central bank digital currency (CBDC) as we are reading further in the altcoin news today.

A new local report informs about the meetings that were held by the Bank of Japan, the Financial Services Agency and the Ministry of Finance. The document states that the most important financial authorities of the nation have discussed the potential benefits and disadvantages as a consequence of launching a cryptocurrency.

Japan’s financial authority thinks that a central bank digital currency (CBDC) can have a strengthening influence on the online presence of Japan, because of lower costs for cross-border financial transactions and quite easier access. But the monetary authorities mention also the possibility of illegal usage. According to them, cryptocurrencies can bring opportunities for money laundering and other financial illegal activities.

The report also states that Yoshiki Takeuchi, the Vice Minister for international affairs of the Ministry of Finance, Ryozo Himino the Vice Minister for international affairs of the Financial Services Agency and Shinichi Uchida the Executive Director for international affairs of the Bank of Japan have attended the meeting. Besides all the topics, one topic was the impact of cryptocurrency on the current dollar-centered world financial system.

The Governor of the Bank of Japan, Haruhiko Kuroda thinks that the launching of a central bank digital currency (CBDC) needs much more extensive research to comply on various requirements:

 “We are advancing research and study from the technical and legal perspectives so that we will be able to move in an appropriate way when there is a growing need.”

In the first half of this month, Japan stated that it will release drafted proposals for the creation of a central bank digital currency. This move was seen as a direct response to the progress made by China in this sphere. A senior lawmaker of the ruling Liberal Democratic Party of Japan said that Japan needs the United States if it wants to be competitive:

 “Without the U.S., we cannot counter China’s efforts to challenge the existing reserve currency and international settlement system.”