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  • LPD lawmakers led by Akira Amari will on Friday submit a proposal to the government.
  • Japan is unlikely to issue a digital currency in the near future due to technical and legal hindrances.

Lawmakers associated with Japan’s ruling party, the Liberal Democratic Party (LDP) are urging the government to consider launching a sovereign digital currency. The group of lawmakers says that a Japanese digital currency will help to counter China’s soon to launched central bank-backed digital currency.

Reuters reported on Friday, that the group, led by party heavyweight Akira Amari, who is also the former minister for economy will submit a proposal to the government on Friday.

Despite the urge from the lawmakers, Japan is unlikely to issue a digital currency in the near future, mainly because of both technical and legal challenges. Moreover, the Bank of Japan (BoJ) has maintained that it has no plans to issue a digital currency. However, BoJ is among a group of six central banks that have formed a working group to look into the research and development of central bank digital currencies (CBDCs).

Read more: Six central banks April’s meeting to discuss CBDCs