Japan is likely to launch a central bank digital currency, a CBDC around 2030. This news sparked mixed reactions, because skeptics view it as a troubling shift away from cash, and towards financial tyranny.
Changing attitudes
In the past years, Japan’s long-standing belief that “cash is king” has begun to change.
Many people noticed that urban areas like Tokyo are increasingly moving away from physical money, with some restaurants even refusing to accept cash.
This trend could expand across the country, aligning with global movements toward cashless societies.
Discussions about going cashless often lead to conversations about cryptocurrencies, stablecoins, and CBDCs.
Japanese journalist Shinichi Morikawa believes that Japan may adopt a CBDC within the next five years.
Control-freak governments want control money too
At a fintech event in Tokyo, Morikawa stated that the European Union’s progress on CBDCs would likely influence Japan’s decision.
“The EU’s movement will be a catalyst, and after 2028, when the introduction is expected to start in the EU, it will probably start to be introduced in Japan around 2030.”
The Bank of Japan has been exploring the idea of digital currency for some time, releasing statements on the topic since 2020 and updating its plans in April 2024.
While some crypto enthusiasts are excited about the potential for a Japanese CBDC, there are concerns about privacy and government control.
Critics argue that CBDCs could allow the central bank to monitor individual spending habits and even restrict purchases using AI technology. Like in a tyranny.
No privacy, full control over the citizens’ life
The BOJ noted that declining birth rates and an aging population are making it more expensive to circulate cash.
They warn that access to physical money may become more difficult in some areas. While this might sound beneficial at first glance, skeptics worry that it signals a move away from cash altogether.
Morikawa’s prediction of a 2030 launch may not sit well with those wary of the United Nations’ “2030 Agenda” and its Sustainable Development Goals.
Some fear that a CBDC could be linked to Japan’s “My Number system,” which serves as a national identification system for residents, and which could lead to the social credit score dystopia.
Morikawa asserts that the global trend toward considering CBDCs looks unstoppable and believes Japan will introduce one in the future.
Yet, for those who see potential dangers ahead, sticking with traditional cash, precious metals, and true peer-to-peer cryptocurrencies may seem like a better option.
