A report stated that Japan needs to adapt its laws to issue a central bank digital currency. Kozo Yamamoto, the head of the Liberal Democratic Party’s council on financial affairs and a former official at the Ministry of Finance, believes that Japan must revise a law stipulating the Bank of Japan’s mandate and responsibilities regarding the development of a CBDC.
It has been reported that Yamamoto said that potential amendments to the BoJ law would be a good opportunity to consider other changes like adding job creation to the central bank’s mandate.
“Like the U.S. Federal Reserve, the BOJ should set job creation and inflation as its mandate […] The new law should also clarify that 2% inflation is the BOJ’s policy target.”
Likewise, Yamamoto’s remarks come shortly after the BoJ officially announced its plans to conduct a proof-of-concept for the digital yen in 2021.
The announcement came as part of Japan’s central bank’s first joint report into CBDC issued on October 9.
Thus, the BoJ was claiming that it had no plans to launch a CBDC in the near future.