This is not an arms race, but the sentiment of the current central bank battle does sound like it. With the exception of the United States, the world’s major economic powers are busy launching their CBDCs as quickly as possible. Slightly ahead with trials already underway for its digital currency, China is a scarecrow in this race. A situation that worried in particular Anthony Pompliano for whom the advance taken by the Chinese could prove detrimental to the Americans. But in this atmosphere of fear, the Central Bank of Japan seems calm, believing thata single digital currency cannot rule the world. Explanations.
Central Bank of Japan not impressed with Chinese advance
Deputy Minister of Finance for International Affairs of Japan, Kenji okamura recently expressed his concerns about the Chinese CBDC. The Japanese leader, aware of his country’s delay in this matter, declared: ” the first-come advantage is something we should be afraid of “. If this exit reaffirms the desire of the authorities to not to endure the domination of the digital yuan, this opinion is not shared by the Central Bank of Japan.
Responsible for leading the national CBDC project within the institution, Kazushige Kamiyama has just made a statement in total opposition to that of Kenji okamura. He therefore believes that what is currently considered an advantage for neighboring China is not. He goes further by asserting that it could even become a disadvantage in the current race. ” I don’t think a single digital currency will rule the world, as long as each country makes every effort to improve their settlement system Mr. Kamiyama concluded.
Progress taking into account the mistakes of other central banks
The opinion of Mr. Kamiyama is true in that the difficulties facing China after the launch of its CBDC could serve as lessons for other countries. This is precisely what the person relies on, even if he only hints at it. “We would like to follow what other central banks are doing and learn from them, not only from China, but also from other countries He will admit.
Mr. Kamiyama also touched on some technical details regarding the launch of Japan’s digital currency. He thus evoked the possibility of set caps on the quantity issued, and on the quantity of assets that entities would be legally allowed to hold. Such measures would serve, according to him, to prevent capital flight from commercial banks.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
While it is true that Japan and other nations can improve themselves by scrutinizing what is done in China, this principle also holds true for China. This outing proves once again that the race for the CBDC in the world is on more than ever. Place your bets.