Expert Panel to Be Created by Japan for the Investigation of Digital Yen: Report
The United States, China, India, and various European countries are already considering the feasibility of government-backed digital currencies
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The Finance Ministry of Japan is considering the possibility of introducing a digital yen and plans to set up an expert panel in April to study its feasibility, as reported by NHK, a Japanese news outlet.
The panel will primarily focus on developing a framework for a central bank digital currency, also known as CBDC, and will refer to a study by the Bank of Japan (BOJ) in the last two years. The Ministry aims to utilise the insights from the expert panel to prepare for the potential launch of a digital yen.
CBDCs refer to digital versions of conventional currencies, such as the yen, euro, and U.S. dollar, that are backed and issued by central banks.
Unlike crypto, which claim to be decentralised and not supported by any central authority or government, CBDCs are issued by central banks and function within a centralised system.
Although CBDCs are still in their initial phases of development, critics of digital currencies issued by central banks have raised concerns that such technology would offer monetary authorities unparalleled control over financial transactions.
