Central bank of the land of the rising sun aims to design digitalized yen to compete with the potential impact of Chinese CBDC — digital yuan, or digital currency electronic payment (DCEP) that is being actively developed now.
There has already been a lot of messages reporting that China is actively testing its DCEP among civilians, public officials and even continental global companies.
Reining Chinese dominance
Six central banks held a meeting in February to create the working group for exchanging experience on strategies for CBDC usage.
These were central banks possessing meaningful experience in the industry — banks of Canada, England, Japan, Sweden, Switzerland, the European Central Bank and also Bank of International Settlements.
It was reported that Japan had also requested support from the US Federal Reserve to counteract China in this matter.
Nakayama Norihiro, Foreign Affairs vice minister, announced his desire to “collaborate with the Fed and six other central banks including the Japanese in studying virtual currencies”.
