Japan is one of the countries that’s been seriously affected by the coronavirus outbreak but this doesn’t stop the government from considering the adoption of a digital currency, controlled by the central bank.
According to a report from Cointelegraph, Kozo Yamamoto, Liberal Democratic Party Member of the House of Representatives, as well as a former official at Japan’s Ministry of Finance, believes that the country should implement a digital Yen as soon as possible.
Fiat and digital currencies, to live in a balanced harmony
During the interview he gave, Mr. Yamamoto referred to the three traditional roles money has nowadays, specifically, a medium of exchange, store of value and, of course, unit of account.
He also believes that some of the biggest corporations in the world should be able to release their own tokens, in order to control the “medium of exchange and store of value”, considering Facebook as the best example.
“We must protect it (the role of a unit of account) no matter what. If Japan doesn’t issue a digital currency and people in the world use other digital currencies, the Japanese Yen will be forgotten and lose its sovereignty.”
He also pointed out that a digital version of the Yen could play a very important role in the country’s economy, acting as a bridge currency between other digital currencies.
Japan needs a CBDC
If giants like Google, Apple, Facebook or Amazon will eventually issue their digital tokens, these can be used within their own wallets, without any interoperability between them. But there is a solution.
On the other side, Mr. Yamamoto believes that central bank digital currencies can be the answer to this problem and blockchain should be used for this, due to its ability to track money and also check transactions above a certain sum.