Posted 2 years ago | by Ben Armstrong
Japan is Falling Behind China in CBDC Race – Years Lost to Inaction
Japan regulators have concerns about the fact that the digital yuan could become a real currency for international trade, especially since Japan is “lagging six years behind China” when it comes to digital currency progress.
In a statement on Japanese media, former Pan Pacific director Yusuke Takano pointed out China’s attempts to, “lead the world in the blockchain sector through a concerted national effort.”
Additionally, there will be four more big conferences in China by the end of the year, while Tokyo is waiting for the next major blockchain event until 2021.
Japan is Stuck in the Western Financial Quagmire
It appears that Japan’s efforts to support the blockchain industry have been weak when compared to those in the Middle Kingdom.
When it comes to progress on a CBDC, China has a far more advanced program. Chinese state-affiliated websites have published a number of news pieces about the digital yuan, though it is still not being used by the general public.
According to Takano, China is working to win the CBDC race while Japan isn't even in the race. China's ambition is to be the world's leader in the blockchain industry and it could threaten the hegemony of other national digital currencies.
Takano expressed his concerns about the future of blockchain development in Japan,
“Japan started its CBDC project six years behind China. Only experts are really paying attention to the relatively few blockchain conferences that are held in Japan. Is Japan really OK with this?”
China has its Own Struggles
While Japan may lag China in terms of CBDC technology – China is becoming a pariah on the global stage. The idea that a politically isolated nation like China will be able to successfully launch a viable global reserve currency is absurd.
There is zero doubt that any CBDC to emerge from China would be politically loaded, and not viable outside of China's major trading partners (excluding the US and EU).
With all the political problems that China is facing, technology isn't going to be enough to secure its lead in the world of CBDCs. While it may be able to create a wonderful domestic system, expanding that model globally will prove impossible.
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