Japanese officials: it is difficult to deal with China's central bank digital currency without US help

Japan's senior lawmaker and deputy foreign affairs minister Norihiro Nakayama said that Japan needs to strengthen cooperation with the United States to resist the potential impact of the central bank's digital currency that China plans to use.

According to Bloomberg, Nakayama plans to release a digital currency proposal on Friday, and he hopes that the Federal Reserve will work with six other central banks, including the Bank of Japan, to research digital currencies.

"We believe that the digital yuan poses a challenge to the existing global reserve currency system. Without the United States, we cannot resist China's efforts to challenge the existing reserve currency and international settlement system," Nakayama said.

His comments suggest that Japanese policymakers are increasingly worried about the possible impact of digitizing the yuan. China's central bank digital currency program and Facebook's Libra crypto project have prompted central banks around the world to accelerate their understanding of digital currency functions and impacts.

Nakayama said, "China has a population of 1.4 billion, so within the digital economy framework of the Belt and Road Initiative, the digital renminbi is likely to become the standard in the digital economy."

He also pointed out that China already has a great influence in Africa, and Japan needs to ensure that it has the technical knowledge and capabilities to meet the challenges before the digital yuan is widely circulated in Africa.

Hiromi Yamaoka, former head of the Bank of Japan's financial solutions, also expressed concern that he was worried that Japan might use the digital currency to enhance its position. Yamaoka said, "China is a competitor. If the renminbi is used more widely than the yen, it will cause Japan's economic strength and influence to decline in the medium to long term."

He also believes that Libra is also a catalyst for the central bank to take action to explore the possibility of its own digital currency, because Libra may make the central bank's monetary policy no longer useful.

This week, Fed Governor Lael Brainard also stated that he is studying the potential of the United States to launch digital currencies. He mentioned, "Given the important role of the US dollar, it is important that we remain at the forefront of central bank digital currency related research and policy development. "

Image source: Pixabay

By Liang CHE

This article is from bitpush.news. Please reprint the source.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Alameda Engineer SBF stole my life savings

As an engineer at Alameda Research, my entire life savings were stolen by my former boss, Sam Bankman-Fried (known to...

Blockchain

Eat Reason Rationally | Who is the real winner of the Steem incident?

Sun Yuchen VS Steem community was the most discussed topic in the industry last week. On February 14, Sun Yuchen comp...

Blockchain

Italian securities regulator establishes cryptocurrency regulations, has closed 2 cryptocurrency trading sites

Cointelegraph reported on February 11 that Italian securities regulators recently closed six foreign exchange trading...

Blockchain

Bella Fang: The exchange is at the top of the food chain. How can small and medium-sized projects seize this channel?

On the afternoon of the 9th, at the 2nd Global Blockchain Summit·Wuzhen site hosted by Babbitt, Bella Fang, foun...

Blockchain

Interpretation of the new SFC regulation: How to operate a licensed virtual asset exchange in Hong Kong?

Author: According to Health Source: Zero Finance On the evening of November 6, the Hong Kong Securities Regulatory Co...

Opinion

Exclusive Interview with dYdX Foundation CEO dYdX Chain Abandons Off-chain Order Book, Aims to Become Public Infrastructure

The CEO of the dYdX Foundation, Charles, believes that dYdX will develop towards becoming a derivative giant, and bec...