China being ‘first-mover’ in the digital currency the Oldest Japanese official worries

ByClark

China may acquire control over global CBDC standards, Japanese official alerts.

Japanese banking officials keep going to voice worry over China’s workflow development in the growth of its central bank digital currency.

Kenji Okamura, vice-finance minister for Japan’s international affairs, alert the global community of the possible risks of China’s digital yuan, Reuters reported October 9.

Okamura told about China’s digital yuan first step is “moving at a comparatively fast pace” as the Chinese government presumptively intents to be the first global jurisdiction to choose a CBDC.

‘First-mover advantage is something we should be afraid of,’ Okamura says at a digital seminar detained by the Official Monetary and Financial Institutions Forum, adding:

This pro is arranging  the standards of scheme design because of the reason it’s the 1st mover (and) the technology place which will alleviate foster wide adoption of that digital currency.”

The news comes in short just after an incident where Chinese magazine run by the country’s central bank profess that China might become the 1st  nation to launch a digital currency in September-mid  2020. In the editorial, the authors cleared that the launch and control of a digital currency will become a “new battlefield” of rivalry over sovereign countries.

In spite of a huge number of countries taking part in an active form researching and piloting CBDCs, China is seemingly winning the CBDC run so far. On October 5, China’s central bank officially declared the 1st results of the digital yuan pilots, professing that the country has processed $162 million in CBDC transactions within April and August 2020.

As stated by Cointelegraph, few global jurisdictions like Sweden and the Bahamas have as well established tests for their personal digital currencies. In spite of, these new steps are on the face of it lagging back of the digital yuan as no strong results have been coming out so far. Ye, the Bahamas profess to be the first country in the world to roll out a state-backed realistic currency nationwide after issuing the first tests in late 2019.

While it’s hard to say who’s, in reality, going to win the global CBDC race, Japan has no plans to launch a CBDC in the near future. In July 2020, the Bank of Japan has officially declared the formation of a dedicated team to explore CBDC development, stating that the bank does not have plans to issue its own CBDC

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Clark

Head of the technology.

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