January 24, 2020 Japan is preparing a proposal to issue its own digital currency.

Prime Minister Shinzo Abe notified parliament today that the government and the Bank of Japan have launched a joint initiative to explore a national digital currency to improve the yen’s functionality as a means of settlement. Fellow Liberal Democratic Party policymaker and Vice-Minister for Foreign Affairs Norihiro Nakayama stated that the move is intended to counter the digital yuan and will be a collaboration between the government and private sector. Further, the Bank of Japan agreed earlier this week to work alongside its English, European, Canadian and Swiss counterparts in exploring central bank digital currencies.