Bank of Japan begins preparing to develop digital Yen

A growing number of countries around the world are willing to issue a national digital currency (CBDC). The Japanese authorities have repeatedly stated that, if necessary, the central bank can launch a token pegged to the yen.

This week, the head of the Central Bank Haruhiko Kuroda confirmed that the regulator may soon begin work on creating a national cryptocurrency.

As Reuters clarifies, preparations for the launch of the token will accelerate if circumstances call for it.

Kuroda noted during his speech at the seminar: "In terms of the stability and efficiency of the payment and market systems, it is important for us to carefully prepare ourselves to respond appropriately to changing circumstances."

Note that Japan's neighbors, South Korea and China, are also preparing to launch their fiat-backed tokens.

The Bank of Korea previously announced that it plans to test the digital won by the end of 2021 and develop a regulatory framework to regulate transactions with this instrument.