A group of lawmakers in Japan are reportedly working to create a state-issued digital currency. According to the news agency Reuters, one of the lawmakers was quoted as saying that the thought of its creation was ‘inspired’ from Facebook‘s Libra and China’s digital yuan. The group devising the proposal is said to be handing over its plan next month.
Crux of the Matter
Bank of Japan Governor Haruhiko Kuroda said that the central bank has no plans now to issue digital currencies immediately but is conducting research in case any future case scenarios arise.
In his parliamentary discussion, he added that “If stable coins backed by companies with a huge customer base are issued globally, that could have an impact on monetary policy and financial system stability.”
In mid-2019, the Indian government had said that it wanted to criminalise all commercial dealings in private cryptocurrencies.
However, an inter-ministerial committee set up by the government to study the ecosystem, had admitted that the distributed-ledger technology (DLT) can have positive effects if deployed in financial services.
In the meantime, China is preparing to launch its own cryptocurrency and other Asian nations are bracing themselves for blockchain-based currencies.
The officially-named Digital Currency Electronic Payment will be powered partially by blockchain technology and dispersed through digital wallets.
Curiopedia
Digital currency (digital money, electronic money or electronic currency) is a type of currency available in digital form (in contrast to physical, such as banknotes and coins). It exhibits properties similar to physical currencies but can allow for instantaneous transactions and borderless transfer-of-ownership. Examples include virtual currencies, cryptocurrencies, and central bank digital currency. These currencies may be used to buy physical goods and services, but may also be restricted to certain communities such as for use inside an online game. It is a money balance recorded electronically on a stored-value card or other devices. Another form of electronic money is network money, allowing the transfer of value on computer networks, particularly the Internet. Electronic money is also a claim on a private bank or other financial institution such as bank deposits. It can either be centralized, where there is a central point of control over the money supply, or decentralized, where the control over the money supply can come from various sources. More Info
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