- A renowned journalist has disclosed that Japan could start a full implementation of its Central Bank Digital Currency (CBDC) by 2030.
- Reports also allege that Ripple could be at the center of this development as it has an extensive relationship with Japanese banks.
Excitement builds around the XRP community as Japanese Journalist Shinichi Morikawa discloses that the Asian country could embrace Central Bank Digital Currency (CBDC) in 2030. According to a report, Ripple could play a crucial role in this initiative as it has, over the years, worked with Japanese banks to issue stablecoins and make their XRP Ledger (XRPL) the foundation of government projects.
Speaking at an event in Tokyo, Morikawa hinted that the CBDC move would be largely influenced by the European Union’s (EU) decision to go all out on this financial system.
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 movement to consider CBDC (Central Bank Digital Currency) is unstoppable around the world, and I believe it will be introduced in Japan in the future.
As we disclosed in August, the European Central Bank (ECB) has admitted that CBDCs could be the best solution to overseas remittance. Our research also shows that the Bank of Japan (BOJ) emphasized this in 2020 and provided an updated version on that context in 2024. Its recent update was captured in a report entitled “Central Bank Digital Currency Experiments Progress on the Pilot Program,” where a crypto component like XRP was cited.
More on the Potential CBDC and Japan-Ripple Relationship
Amid this development, Ripple CEO Brad Garlinghouse recently lauded the significant transformation and the incredible infrastructure of the Japanese crypto industry. The president and CEO of financial giant SBI Holdings, Yoshitaka Kitao, has also boasted in the past that his company is the largest external shareholder of Ripple Labs. Interestingly, Kitao is reported to be part of Japan’s CBDC forum.
At the forefront of the CBDC revolution, Ripple launched a dedicated platform in May 2023 to enable central Banks, government, and financial institutions to issue CBDCs and stablecoins.
The seriousness of the CBDC implementation in Japan is evident in the ongoing related political and corporate level discussions where the Japan Blockchain Association (JBA) has also scheduled to speak on its global trend next week. However, several individuals have raised concerns about their economic privacy. One Japanese who expressed his displeasure on this initiative at the BOJ-watcher on social media pointed out that:
CBDCs would have an authoritarian element, allowing the central bank to directly control individuals’ buying and selling, and could easily use AI algorithms to block certain people or goods from purchasing.
Meanwhile, the BoJ argues that cash accessibility will be difficult in some areas in the future due to the population outflow to urban areas, declining birth rate, and aging population.
The declining birthrate and aging population, as well as population outflow to urban areas, are increasing the cost of circulating cash throughout the country, and in some areas, it may become more difficult for residents to access cash in the future.
According to data, 134 countries are currently exploring CBDCs with 66 of them progressing to the advanced stage. The ongoing discussion has triggered a 2.7% surge in the price of XRP to trade at $0.55 at press time.
