Three Japanese megabanks and major telecommunications companies will set up a panel this month to study the introduction of digital currencies by the Bank of Japan, it has been learned.
The panel aims to deepen discussions on issues and solutions for a digital yen, hoping the private sector can take the initiative in showing the direction of services and systems to be realized. The panel will compile a proposal by autumn and urge the Bank of Japan as well as the government to improve the environment for introducing such a currency.
The panel will be led by DeCurret Inc., an affiliated company of the Internet Initiative Japan Inc. There will be about 10 participating companies, including megabanks MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank, as well as East Japan Railway Co. and major telecommunications and distribution companies.
A former Bank of Japan executive will serve as chair and officials from relevant ministries and agencies, including the Bank of Japan, the Finance Ministry and the Financial Services Agency, will be invited as observers.
Study meetings will be held once or twice a month from June to September before compiling a report by autumn, in which the government and Bank of Japan will be asked to establish necessary laws and systems.
Regarding the concept of a digital currency issued by a central bank, China is aiming to issue a digital yuan at an early date. There are persistent concerns that Libra, a crypto-asset or virtual currency of Facebook Inc., may threaten the position of national currencies. In Japan, the public and private sectors are calling for early consideration of the issue.
While the introduction of a digital yen is expected to lower fees for payments and remittances, there is also concern that it will destabilize the financial system and infringe on privacy. The panel hopes to find solutions to these problems from the viewpoint of the private sector. It also wants to take the lead in the spread of digital currencies in the future.
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