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TOKYO (Reuters) - The Bank of Japan must be ready to issue central bank digital currencies (CBDC) that coexist with various other forms of money to offer the public a The Ministry outlined the need to ensure a CBDC can coexist with existing private sector digital payment firms, according to NHK news. Any CBDC needs to enhance The Bank of Japan must be ready to issue central bank digital currencies (CBDC) that coexist with various other forms of money to offer the public a safe digital The deputy governor of the Bank of Japan has said the institution must be ready to issue a central bank digital currency (CBDC) should public demand surge in response In Japan, a wide array of cashless payment instruments, including credit cards, e-money, and QR code payment, are in use. How do CBDCs differ from such existing digital payment instruments? The Central Bank of Japan has said that needs to be ready to issue a CBDC to offer a “safe” digital payment system to the public. Specifically, Reuters reported the Launching a proprietary CBDC offers numerous benefits, including facilitating faster and more affordable cross-border payments. CBDCs can also boost financial Japan’s CBDC examined by the Liaison Meeting is a digital currency that is expected to be used for payments in a similar way to private digital payment services, such as electronic money

Bank of Japan Says CBDC Needs to Be Ready to Offer Safe Digital Payment System to the Public

The Bank of Japan is taking significant steps towards potentially launching a Central Bank Digital Currency (CBDC). The Central Bank of Japan has said that needs to be ready to issue a CBDC to offer a “safe” digital payment system to the public. Specifically, Reuters reported the Bank of Japan must be ready to issue central bank digital currencies (CBDC) that coexist with various other forms of money to offer the public a safe digital payment system.

CBDC Coexistence with Existing Payment Systems

A key aspect of the Bank of Japan's vision for a CBDC is its ability to coexist with existing payment methods. TOKYO (Reuters) - The Bank of Japan must be ready to issue central bank digital currencies (CBDC) that coexist with various other forms of money to offer the public a. The Ministry outlined the need to ensure a CBDC can coexist with existing private sector digital payment firms, according to NHK news. Any CBDC needs to enhance, not replace, current systems.

Why is a CBDC Important?

The deputy governor of the Bank of Japan has said the institution must be ready to issue a central bank digital currency (CBDC) should public demand surge in response to its potential. Launching a proprietary CBDC offers numerous benefits, including facilitating faster and more affordable cross-border payments. CBDCs can also boost financial inclusion and provide a secure alternative to private cryptocurrencies.

CBDC vs. Existing Digital Payments in Japan

In Japan, a wide array of cashless payment instruments, including credit cards, e-money, and QR code payment, are in use. How do CBDCs differ from such existing digital payment instruments? Japan’s CBDC examined by the Liaison Meeting is a digital currency that is expected to be used for payments in a similar way to private digital payment services, such as electronic money. However, a CBDC, backed by the central bank, offers a level of security and stability not typically found in private digital payment solutions.

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