Japan needs urgent digital yen, says Yamamoto
Yamamoto, a leading figure in the Japanese government, claims that the central bank must issue its digital currency quickly.
Kozo Yamamoto, a member of the House of Representatives of the Liberal Democratic Party, said there is an urgent need to implement a digital yen quickly. According to Yamamoto, the CBDC issued by the Japanese central bank should be available in two to three years.
Amid the global financial uncertainty caused by the spread of the crownvirus, several countries continue to work on developing their own digital currencies issued by their central banks. According to Yamamoto, the use of blockchain is key for a CBDC since it gives security and transparency to transactions, and even "know your customer" checks can be implemented for those transactions that exceed a certain amount of money.
Yamamoto explains the three roles that a currency must fulfill to be considered as money: it must be a medium of exchange, it must allow for the storage of value and it must act as a unit of account. Yamamoto believes that large corporations should be able to issue their tokens and control the roles of money in terms of medium of exchange and store of value; but the third role, unit of account, must be controlled by the government. Yamamoto explains: "We must protect it (the role of the unit of account) no matter what. If Japan does not issue a digital currency and the people of the world use other digital currencies, the Japanese yen will be forgotten and lose its sovereignty."