Japan To Release Cryptocurrency Proposal Friday To Counter China’s Digital Yuan

Japan is seemingly following the footsteps of China to ensure that they are not left out in the race for government-backed cryptocurrencies. The country’s lawmakers will reportedly release drafted proposals tomorrow (Friday) for the creation of their own central bank digital currency (CBDC). 

Countering China’s Digital Yaun

Japan initially became interested in issuing a digital currency after China announced plans to leverage the blockchain technology to launch a digital yuan last year. The country believes that China’s intention is a challenge for the existing reserve currency and international settlement system.  

Japan sees China as a competitor. They fear that the digital yuan, if launched, coupled with China’s 1.4 billion population, could become the standard within the digital economy. China is already the world’s second-largest economy in terms of annual GDP. 

Hence, Japan’s move to create its own cryptocurrency is a supposed measure to counter the potential…