As of June 29th, 2021, the former top Japanese financial regulator Toshihide Endo revealed to Reuters that the increasing endeavors & continuing strategies of China towards issuing a central bank digital currency (CBDC) are likely to demonstrate a massive impact on how quickly developed economies follow suit.
Central banks have already sped up their efforts of developing digital currencies to upgrade & streamline financial systems. The People's Bank of China is driving & handling launching trials, whereas the Bank of Japan (BOJ) started its CBDC project in April.
On Monday, several US officials showed their doubts & misbelief about CBDCs, yet Endo formed an opinion that such a threat may change if it is introduced by the world's second-largest economy.
According to Endo, who was Financial Services Agency (FSA) commissioner until 2020, explained on Monday, “If China launches a CBDC, it will be equipped with immense social infrastructure. It will be a significant move irresistible to ignore by other nations. Japan and other developed nations will struggle with the complex doubt of how quickly they should follow.” Endo holds close ties with FSA and BOJ authorities.
As FSA commissioner, Endo noticed a range of regulations including for banks and digital currencies.
He additionally worked with the BOJ in prodding local banks to organize the ongoing complexities such as the profits hit from delayed ultra-low interest rates.
