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Japan to launch pilot program for issuing digital yen

49 Comments
By Leika Kihara

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49 Comments
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Unless they release the source code, I'll be strongly ignoring this.

10 ( +20 / -10 )

Cryptocurrencies are still not based on any economic activity or product and are bought and sold in fiat currencies. They will never replace real currency as they have no company backing them that generates real income.

3 ( +12 / -9 )

Japan will start a pilot program in April to test the use of a digital yen, its central bank said, joining a growing number of countries seeking to catch up with front-runner China in launching a central bank digital currency (CBDC).

Little by little China is putting itself at the forefront of the world..

-12 ( +8 / -20 )

Wise move.

Crypto is the future, so the Japanese government is doing the right thing here by developing a Japanese crypto. 100% backed by the Japanese central bank.

BTW - Bitcoin is ticking along nicely. Up 40% this year, investors making a killing.

-25 ( +2 / -27 )

Little by little China is putting itself at the forefront of the world..

And if the world can’t afford to buy anything and their digital money is heavily controlled, China loses in the end.

-5 ( +5 / -10 )

@Fighto!

Bitcoin's still down 40% from a year ago. That kind of instability needs to be controlled in order for BitCoin, etc., to ever be considered as a stable currency. Can't have such wild fluctuations and consumer confidence at the same time. That generally requires some sort of regulation which is what the crypto crowds fear.

There are some uses, in the case of Ethereum, such as access to the distributed computing world, however the claims that this will free people from their fiat currency chains are lofty to say the least.

7 ( +10 / -3 )

With the LDP at the wheel, what could possibly go wrong?

15 ( +21 / -6 )

With blockchain or very similar technology I would trust otherwise corruption will prevail on top dogs of the system.

BTW at least will be cheaper to produce coin and bills as no tree gonna be cut and no mineral gonna be mined.

I guess those who works in this chain may be going to protest and strike to protect themselves but progress is unstoppable...

-2 ( +3 / -5 )

@bass4funk

Little by little China is putting itself at the forefront of the world..

And if the world can’t afford to buy anything and their digital money is heavily controlled, China loses in the end.

If this happens will be like 1929 Wall Street crash...

0 ( +2 / -2 )

With the LDP at the wheel, what could possibly go wrong?

This not the LDP, it's the BOJ which is independent of the LDP.

-11 ( +5 / -16 )

Now, they want to control digital currency.

6 ( +10 / -4 )

Nobody, and I mean nobody I know wants a CBDC. The ability of governments, like the Trudeau government in Canada, to just turn off the money owned by someone with a different political opinion is just too great a temptation for politicians not to use. At least when Trudeau froze bank accounts, people could still use cash.

11 ( +13 / -2 )

They'll market it as convenient and safe, and that it can prevent crimes like money laundering.

But they'll forget to tell you about the part where they can control your consumption and movement, and switch you off if you don't behave.

Keep cash, and a supply of precious metals in different weights as an insurance policy. Anyone who trusts the words of governments after what's happened over the last few years is naive.

8 ( +14 / -6 )

"This not the LDP, it's the BOJ which is independent of the LDP."

Oh yeah sure. Just like the Olympics were independent of the LDP wink, wink.

Just like Denso is a seperate entity wink, wink.

Well the concrete companies are independent of the LDP wink, wink.

Thos big brown envelopes aren't for the bake sale buddy.

10 ( +13 / -3 )

WTF, japan hates China but wants to catch up with china....

BIG brother is watching you.

2 ( +9 / -7 )

Still only issued paper bills and minted coins are the one and only real and valid money, in all leading economies. If you find anything else to pay with , gold, jewelry, bitcoins, PayPay points or all such, and the transaction counterparts accept it, then you are only temporarily lucky. Of course there are also more widespread pseudo currencies like those digital coins or several payment points programs, but as I said, it’s no money, backed by nothing, volatile, and you always need quite some luck and acceptance from the other potential business side. If you really like such gambling then at least add some entertainment like in casinos or at horse racing, so that you don’t lose everything but still have some nice memories of the entertaining place.

1 ( +4 / -3 )

Bring back the gold standard. Wasn't perfect, but it kept prices stable for hundreds of years.

10 ( +14 / -4 )

Bring back the gold standard.

I guess, that’s impossible nowadays, however much wished for. There’s simply not much enough gold available for that. All the gold so far is about an estimated cube of 20 meters side length only. Seems to be not so much and sufficient for 8 or 10 bln. people and all our economies plus your money backing gold standard. Needless to say that additional gold findings or somehow synthetically produced gold would then make that gold standard again worthless.

0 ( +2 / -2 )

If and when this takes grip banks and financial institutions will have TOTAL control over the lives and daily affairs of almost all citizens. Your assets will be just a number kept at your bank account NO CASH in hand and you will be charged fees when ever you wish to use your own money, and you will get nothing in return while the bank is using your MONEY unlike in other nations were banks pay little interest even on regular accounts.

As usual it is always a ONE WAY STREET here.

6 ( +8 / -2 )

Yeah, great: Do it to "catch up with China", where a centralized currency is wielded as leverage over the citizenry, where if someone gets out of line in 'private' conversations on on WeChat, the Chinese government can see to it that you can't even buy a bus ticket.

Japan (and the US where I live) are free societies and they aren't China, but I am still 100% opposed to the government handling the transactions for things that I buy. It's none of their damn business, and moreover, I don't want to expose myself to the potential for the government tampering with my freedom of purchase should I get out of line, whatever they ever decide that means.

Everyone should be VERY Leary of these moves by ANY government.

3 ( +5 / -2 )

The only real benefit of a digital Yen is if it is stable and can be easily used in other countries by people whose national currencies are failing, allowing them to hold their savings in Yen whilst they live in Venezuela or wherever.

If Britons could have switched their savings held in UK banks into digital USD (still held by their UK bank), pre-Brexit, when Sterling was $1.65, today, with Sterling at $1.20, their savings would have held its real world value, rather than losing 25% of that value. That is why the UK has such severe inflation (although the BBC will blame it on Ukraine, through which 99% of global trade and food apparently moves, and is now held up).

Aside from that, you may as well just use your debit card or paypal account and accept that the middle men will take a cut for the enormously onerous task of having their software convert one number into another. These were easy to use across borders, but are now being hampered by 101 different rules, regulations and requirements, designed by governments to limit cross border trade.

And jansob1 is right - governments do want to phase out banknotes, because they can track digital money more easily - remotely, from their PCs. Amusingly, central bankers want to ban crypto because it is 'difficult to regulate and anonymous'. For over a century, US dollar bills have been the favoured currency of criminals, as they have always been 'difficult to regulate and anonymous'. Crypto isn't anonymous and can be tracked. Central banks just don't like it because they cannot control and manipulate it.

Governments will only allow things that they control, so they control their citizens and can monitor them 24/7. 'Catch up with China'? 'Be more like China', would be more accurate.

3 ( +4 / -1 )

You will own nothing but you will be happy.

This digital scheme in G7 is to enact the deposit blockade. The elites know that their financial hegemony is coming to an end, the USD hegemony is going to die soon and it will take G7 currencies down with it. Blocking citizens from withdrawing their savings in banks is the last ditch. Japan wants to go onboard with CBDC because it wants to reset the whole financial system even if it's aware that it won't work.

-2 ( +6 / -8 )

It's pretty clear where all this is headed. Governments will have their CBDCs. Then, after people are used to it they will phase out money, giving people a grace period to convert their cash to CBDCs - after which the cash will be useless. Then, controls will come on what you can and cannot buy.

People should be rooting for cryptocurrencies, whether bitcoin or another truly decentralized coin, because they will be one of the only ways out of the fiscal prison they are building for us. Same goes for gold and precious metals.

1 ( +3 / -2 )

Yes who wouldn’t want to be like the communist party. With their social credit system and their one party rule. Ewhat a dumb idea. Hoard previous metals just in case the government commits seppuku.

1 ( +2 / -1 )

@Fighto!

Cryptos are decentralised whereas CBDCs are centralised. Unlike cash CBDCs are not private and are also programmable, meaning control of your digital currency can be overridden. For example, the central bank could introduce negative interest rates on your savings or pair CBDCs with a social credit system and there is nothing you can do about it. Still think it’s a wise move?

3 ( +4 / -1 )

I remember a typhoon a few years ago here when most of the electricity in my area went. Expressway entrance were closed because they had no electricity, petrol pumps did not pump, convenience stores closed.

We need money that does not rely on electricity, and it seems digital money is a bit of an energy hog.

It is just an excuse to produce more money with no intrinsic value.

1 ( +4 / -3 )

CBDC is one from tools of control of masses.

say they cant control your money,spending,savings.if they will get report that you are "not liked" by government because of your opinion say about USA,Russia,japanese policies,taxes,LGBT and list goes on-they will simply switch you off from all of your funds.as simple as 1-2-3

you will became "digital slave",will be able to make money,will be asked to pay taxes but rest will be out of your hands.

1 ( +3 / -2 )

Within a week of this opening the system will crash and it will come to light that millions of yen have gone missing.

someone will bow and ‘sorry, we won’t get caught…I mean..we will do our best to improve the leaks.’

4 ( +7 / -3 )

This is the next phase of controlling the world - with digital currency and with using blockchain technology that would perfectly know all the transactions around the world. Are you ready for a surveillance state? Digital means it is programmable. If you are not compliant to the imposed global protocols and regulations, or you are opposed to the narrative, or hold a differing viewpoint, you can be cancelled out. If the global govt thinks you buy too much energy, or purchase more than what you need, etc. you may be cancelled out. If you have too much money, they may reduce it based on what they think you only need. They are already doing this in China. People’s purchasing ability is based on their social credit score.

5 ( +7 / -2 )

the new currency for slaves

4 ( +8 / -4 )

WobotToday  11:25 am JST

that is the problem, the cash will disappear like in many other countries.

-2 ( +3 / -5 )

Everyone should be VERY Leary of these moves by ANY government.

WARNING !!!!!

If the population of the world are so stupid as to allow governments to CONTROL their personal money....then they deserve all the pain and tyranny that will surely come with that CONTROL. Remember...once these digital currencies are in place...there is no going back !!!

5 ( +7 / -2 )

Crypto is the future, so the Japanese government is doing the right thing here by developing a Japanese crypto. 100% backed by the Japanese central bank.

No. Crypto is the future BECAUSE governments across the world are trying to introduce these new Orwellian CBDC system.

When you hear cryptocurrency gives you financial freedom, it doesnt mean that it will make you rich enough to retire (maybe it can), it means that you have control of your own money rather than the bank, or the central government.

OFC most cryptocurrencies are just ponzi schemes, and will probably go to 0, but the technology is revolutionary, and assets such as bitcoin can protect you from these overreaching government policies.

3 ( +5 / -2 )

assets such as bitcoin can protect you from these overreaching government policies.

I beg to differ, what is the point of a digital asset that triggers a taxable event every time you want to use it as a currency? The moment that governments classed it as an asset and removed the threat of crypto being used as a currency, they won.

2 ( +2 / -0 )

WARNING !!!!!

If the population of the world are so stupid as to allow governments to CONTROL their personal money....then they deserve all the pain and tyranny that will surely come with that CONTROL. Remember...once these digital currencies are in place...there is no going back !!!

A digital coin can only be traced back to the owner via their wallet. If the wallet has to be registered in order to receive coins then yeah we are screwed, when it comes to privacy. The ability to create anonymous wallets is what we need.

2 ( +2 / -0 )

jansob1Today  07:09 am JST

You won’t be able to. Guaranteed in 5 years paper money will be banned in Japan. No more privacy.

this is not going to happen. And there are several good reasons for this.

first what if an elderly person doesn’t want to use digital cash? Not everyone is so focused on popping into a shop pinging their phone or want to use Amazon. Many prefer pure cash.

second what will happen if you don’t have a smart phone that day? Maybe you lost it? Can you go to the ATM?

Third. What if you really want to control your spending (for what ever reasons) we know from research that people who spend digitally spend about 10% more on “stuff” than if they used physical cash. Some people have ditched the APPs so they can focus on their cash that is in their wallets, because it can allow people to budget better.

imagine all those jobs lost. ATM producers? Carriers? Security guards? Etc etc

im sure it will come but it is not the be all and end all. There is space for both.

4 ( +4 / -0 )

I'm sure NK hackers won't mind trying it out.

1 ( +1 / -0 )

Keep cash, and a supply of precious metals in different weights as an insurance policy. Anyone who trusts the words of governments after what's happened over the last few years is naive.

Lol. I think not.

Cash makes no interest and is chained to inflation.

Precious metals are only worth what someone is willing to pay.

Investing in healthcare and having a diverse portfolio of other little goodies is the best way for serious long term investment.

No single advice suites everyone. And taking advice from a nameless voice on the net is not wise either.

-2 ( +1 / -3 )

You won’t be able to. Guaranteed in 5 years paper money will be banned in Japan. No more privacy.

Japan? Where people still use ATMs a lot? Where managers haul bags full of money to pay employees?

I'm sure NK hackers won't mind trying it out.

Yeah, 2022 was a banner year for crypto hackers, led by North Korea

"2022 Biggest Year Ever For Crypto Hacking with $3.8 Billion Stolen, Primarily from DeFi Protocols and by North Korea-linked Attackers"

https://blog.chainalysis.com/reports/2022-biggest-year-ever-for-crypto-hacking/

In last year’s Crypto Crime Report, we wrote about how decentralized finance (DeFi) protocols in 2021 became the primary target of crypto hackers. That trend intensified in 2022.

North Korea-linked hackers such as those in cybercriminal syndicate Lazarus Group have been by far the most prolific cryptocurrency hackers over the last few years. In 2022, they shattered their own records for theft, stealing an estimated $1.7 billion worth of cryptocurrency across several hacks we’ve attributed to them. For context, North Korea’s total exports in 2020 totalled $142 million worth of goods, so it isn’t a stretch to say that cryptocurrency hacking is a sizable chunk of the nation’s economy. Most experts agree the North Korean government is using these stolen to fund its nuclear weapons programs.

Also, be careful - 1 in 4 new crypto tokens are scams

"A Quarter of Prominent New Cryptocurrency Tokens Appear to Be Scams, Researchers Find"

https://gizmodo.com/quarter-of-new-cryptocurrency-scams-chainalysis-scheme-1850121978

0 ( +0 / -0 )

People do not realise what it means to have a digital currency. Once banknotes are withdrawn, people are at the whim of the Government and electricity. Should there be a major earthquake or another tsunami or a major earthquake that takes out the electricity - thus making electronic use incapable, people will be unable to pay for essentials, fuel their car, transfer money and their electronic equipment will be useless. This can also happen with solar flares - which happen from time to time - as it did in Quebec in 1989 and the most dangerous - the EMP or Electro Magnetic Pulse - a weapon that China has - and if I am right Russia too. Should they become our enemies (and with the current rhetoric it might not be far away), and we have digital currency, they can cripple the whole country in a matter of minutes and for a great amount of time... Think of the anarchy that will ensure when people cannot get food, fuel or transport. This is a short sighted idea fraught with unthought of consequences.

1 ( +2 / -1 )

Lol. I think not. 

Cash makes no interest and is chained to inflation. 

Precious metals are only worth what someone is willing to pay. 

Investing in healthcare and having a diverse portfolio of other little goodies is the best way for serious long term investment. 

No single advice suites everyone. And taking advice from a nameless voice on the net is not wise either.

Clearly you have no idea why people keep precious metals. But let me give you a hint. One key reason is that they're a tangible means of exchange that don't corrode, hence their value throughout much of human history in many places. If it hits the fan, you can exchange them for goods and services. I'd like to see you exchange a healthcare company share for a week's worth of groceries if the power goes out.

0 ( +0 / -0 )

I highly doubt cash will be banned in any sort of way any time soon. Systems are not fool proof regardless how much redundancy is built in, and it being down for any amount of time with no alternatives seems like a recipe for disaster.

It's possible that there will be a time when cash is rarely used but i think cash will always be there as an alternative.

0 ( +0 / -0 )

Paper always had a special place in Japanese culture -from culinary art to textiles. Now, everything's becoming digital and very clearly the central bank wants to catch up others who already started pilot projects. Yet, the good old banknotes, I believe, will persist in spite of everything.

0 ( +0 / -0 )

Precious metals are only worth what someone is willing to pay.

What does that mean? Literally everything is only worth what somebody is willing to pay. That's how we define something's financial value.

If you are talking about esoteric values, such as beauty, then gold wins again. It has been used in art for many, many centuries. Stock, bonds, and debit notes... not so much.

1 ( +1 / -0 )

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