Japanese lawmakers push for digital currencies talks at G7
Officials seek to counter China's plan to launch digital yuan to prevent its domination on the market
Japanese lawmakers are pushing the government to bring the digital currencies topic to discussion at G7, as China is ready to launch its digital yuan.
According to Reuters, the group of ruling lawmakers led by Akira Amari of a Liberal Democratic Party (LDP) announced the plan for digital currency talks on Friday. Next week the proposal will be presented officially.
Although Japan has not yet revealed any plans to launch digital yen because of technical and legal issues, Tokyo seemingly wants to catch up with China’s efforts in the area. One of the possible ways to achieve that is to cooperate with the US and conduct technical studies on digital currencies, the group’s proposal said.
Amari fears that China’s dominance in the digital market could happen if the traditional dollar-led system collapses. Japanese lawmakers believe it could spread significantly among the emerging economies and substitute the dollar.
In 2020, the US is hosting all the G7 events. The next summit will be held June 10-12 in Miami, on the golf course owned by Donald Trump.
The Chinese central bank has been developing its digital asset project for quite a while. According to the recent data, the project of digital yuan is ready to go live in 2020. The virtual currency will be different from the classic concept of cryptocurrencies, such as Bitcoin.
Some major companies are also approaching the idea of stablecoins. Facebook's crypto project Libra, initially announced in June, is now struggling to gain approval in various jurisdictions. However, state officials cite Facebook’s poor reputation and the regulatory uncertainty behind digital money as main reasons to prohibit the circulation of the future coin.
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