By Leika Kihara and Yoshifumi Takemoto
TOKYO, March 31 (Reuters) - Japan will set up a panel of
experts to discuss the feasibility of issuing a digital yen, two
sources with knowledge of the matter told Reuters, joining a
growing number of countries exploring the launch of a central
bank digital currency (CBDC).
The Ministry of Finance (MOF) will set the panel as early as
April and consist mainly of academics with expertise in digital
currencies, the sources said.
The step will add to the central bank's plan to start in
April a pilot programme to test the use of a digital yen, and
moves Japan closer to issuing a CBDC in several years.
Under a medium-term policy platform issued in 2021, the
government has pledged to start examining the feasibility of
issuing a CBDC when the Bank of Japan's (BOJ) initial phase of
experiments are completed by March 2023.
"It will be in line with the pledge made in the policy
platform," one of the sources said on the plan to set up a
government panel, a view echoed by another source. Both sources
spoke on condition of anonymity as they were not authorised to
speak publicly.
The BOJ has said no decision has been made on whether Japan
will issue a CBDC. But it spent two years experimenting before
announcing the pilot programme, to be ready in case the
government decides to issue a digital yen.
Public broadcaster NHK reported on Thursday the MOF was
considering setting up a new advisory panel in April to discuss
the possibility of issuing a digital yen.
Central banks around the world have stepped up efforts to
develop digital currencies to modernize financial systems and
speed up domestic and international payments.
Japan and other advanced economies are seeking to catch up
with China, which is at the fore of a global race to develop
CBDCs and has ramped up pilot schemes for retail payments.
The U.S. Federal Reserve has also been exploring a fully
digital dollar that some have referred to as Fedcoin. Fed
leaders have said that any launch of such an asset would need
the support of elected leaders.
(Reporting by Leika Kihara and Yoshifumi Takemoto; Editing by
Josie Kao)
Messaging: leika.kihara.reuters.com@reuters.net))
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