The Bank of Japan has created a new division to accelerate the development and issuance of government cryptocurrencies. The Central Bank will cooperate with European banks and think tanks.
According to Mainichi, the Bank of Japan has confirmed that it is creating a new division to accelerate the issuance and development of the state cryptocurrency project. The new subdivision was created under the Department of Payment and Settlement Systems of the Bank of Japan. The ten employees of the division will work under the direction of Department Director Akio Okuno.
The goals of the new division include developing a legal definition of digital currencies, as well as accelerating research and issuing government cryptocurrencies in Japan. The department will also liaise with European financial centers, including the ECB and the Bank of England, to create a globally acceptable government cryptocurrency solution.
The latest announcement from the Japanese Central Bank follows a cabinet report last week on the approval of an economic policy to conduct a "feasibility study" for the Japanese Central Bank's cryptocurrency in a joint project with other countries.
The new Bank of Japan division emerged six months after Deputy Governor Masayoshi Amamiya said the bank should be ready to issue government cryptocurrencies if public demand rises in response to technological advances in settlement systems.
Three private banks in Japan - Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corp - are also testing their own solutions in this area.
As a reminder, last week the Bank of England expressed interest in issuing a state-owned cryptocurrency, stating that these efforts "have tremendous implications for the future of payments and society."