Blockchain, Cryptocurrency, Economy

China’s is Winning in the Crypto Battlefield – Japan feels the anxiety attack

Japanese banking officials extend to voice anxieties over China’s growth in developing its central bank digital currency.

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

Okamura stated that China’s digital yuan ambition is “moving at a relatively fast pace” as the Chinese government likely strives to be the first global jurisdiction to adopt a CBDC.

First-mover advantage is something we should be afraid of,” Okamura stated at a digital seminar backed by the Official Monetary and Financial Institutions Forum, continuing:

“This influence is setting the standards of scheme design because it’s the first mover (and) the technology platform which would facilitate the further wide adoption of that digital currency.”

The news comes shortly after a Chinese magazine run by the country’s central bank claimed that China demands to become the first nation to issue a digital currency in mid-September 2020. In the article, the authors declared that the issuance and control of a digital currency would become a “new battlefield” of engagement between sovereign countries.

Despite several countries actively researching and piloting CBDCs, China is winning the CBDC race so far. On Oct. 5, China’s central bank officially announced the first digital yuan pilots’ first results, claiming that the country has processed $162 million in CBDC transactions between April and August 2020.

Some global authorities like Sweden and the Bahamas have also launched tests for their digital currencies. However, these initiatives lag behind the digital yuan as no concrete results have been provided so far. Still, the Bahamas claim to be the first country in the world to roll out a state-backed virtual currency nationwide after launching the first tests in late 2019.

While it’s tricky to say who’s winning the global CBDC race, Japan has no plans to launch a CBDC shortly. In July 2020, the Bank of Japan officially announced a dedicated team’s formation to explore CBDC development, stating that it does not have plans to issue its own CBDC.

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