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Bank Of Japan Official Says Central Banks Should Improve Payment Systems To Avoid CBDC Domination

A senior official of the Bank of Japan has reiterated that if central banks across the world enhance their settlement system, no digital currency will be able to dominate transactions across the globe.

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In the report that was released by Japan Today, a local news outlet, the senior official said that despite China’s success in their quest for a digital currency, a good payment system by central banks would reduce their domination.

The People’s Bank of China has previously mentioned that it wants to be the first country to launch the Central Bank Digital Currency (CBDC) so it would ease its citizens off the stress of depending on the dollar. Taking a cue from China’s success, Facebook is currently planning to launch its stablecoin.

Bank of Japan to begin its CBDC experiment next year

Furthermore, seven central banks across the globe, including Japan, has laid out a framework that would guide the creation of digital assets in the country. The central bank of Japan also announced that it would surge ahead with its experiments with the CBDC by next year.

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Going further, the official said “but new technology is invented all the time. Even if you’re ahead on the technology available now, you could get locked into what becomes old technology as time passes.” Going by its preparation, the Central Bank of China is hoping to use the CBDC to create an easy and efficient method of settlement across the country.

As earlier mentioned, the Bank of Japan has said that experiments are ongoing and by next year it will agree on ways to operate its local CBDC. This move is coming after seven major central banks across the world said the properties of the CBDC is one major reason why they are trying to launch it in their respective countries.

Furthermore, the Bank of Japan has announced that the first phase of experiments to determine the core of the CBDC would be conducted in April 2020.

A report claims McDonald’s and Starbucks not involved in Digital Yuan testing

In other news, despite reports that American fast food companies, Starbucks and McDonald’s were involved in the testing of the digital Yuan, another report has countered that notion. Presently, China said there are about 300 merchants involved in the testing of the digital currency spread across core locations in the country.

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According to an earlier report by Sina, a news outlet, 19 companies located in Xi’an province were involved in the testing including Starbucks, McDonald’s and Subway. But the new report has rubbished the earlier report and has stated clearly that the firms are yet to join the testing.

The report claims that none of the firms has released positive news to that effect which means that they are yet to participate in the testing. The digital Yuan testing has been going on in China since the beginning of April and has seen testing done across different locations in the country.

The wallets that were involved in the testing were said to have carried out transactions worth around $162 million since the beginning of April.

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Adebayo Owotunse

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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