Although the release date of the Chinese “crypto-yuan” is still unknown, the potential of stablecoin has not escaped the notice of world governments.
Japan Finance Minister Taro Aso has alerted the launch of this cryptocurrency , because he believes that the regulations in place are not strong enough.
Japanese finance minister wary of Chinese crypto-yuan project
As Bloomberg explains , Taro Aso expressed his fears at a G20 summit in Riyadh, which took place during the week. He pointed to a still weak regulatory framework :
” There is a big risk linked to central bank digital currencies, unless the regulation is well calibrated” . He would therefore like China to press pause and push back the release of its cryptocurrency:
“I would say we have to wait for the release of a government digital currency, at least for now.”
Aso is not the first politician to fear the release of the crypto-yuan. Driven by the colossal Chinese economy, the latter could actually shake up the world economy somewhat. Especially since the other major economies are lagging behind when it comes to developing their own stablecoins.
Japan hesitates on the way forward
In any case, Japan’s reluctance regarding digital currency is palpable. At the end of January, the country had nevertheless announced that it was one of the 6 central banks that are forming a working group to study the subject of cryptocurrencies.
But with regard to a “crypto-yen”, the Japanese positioning is – officially – clear: the country does not currently intend to release its own digital currency. That said, Japan is particularly aware in the background that it must not be overwhelmed by the China project, or other similar projects.
A long-awaited crypto-yuan
Still, the “crypto-yuan” is waiting for the moment. We were told of its “imminent release” last October, but for the moment there are no signs that China is ready to launch its stablecoin. What we do know is that it will first be tested in two major cities: Shenzhen and Suzhou.
It will be the state financial institutions that will benefit first, before expanding the use of crypto-yuan if this test phase proves beneficial.
Meanwhile, regulators and global governments are closely monitoring China. And if Taro Aso has no real weight on the development of the “crypto-yuan”, it well represents the nervousness of his counterparts, who are waiting to see how China will initiate this new era.