As pressure mounts to catch up with rival China, a Bank of Japan (BoJ) official has said digital currencies are a “top priority.”

• Speaking to Japanese news outlet The Asahi Shimbun, Takeshi Kimura, departmental director-general, described the digital yen as a chief concern for the central bank.
• The BoJ has been experimenting with a central bank digital currency (CBDC) but has so far said there are no plans to launch one.
• The government said this month the launch of a digital yen would be considered as part of this year's legislative agenda.
• A proposal from the ruling Liberal Democratic Party in June said China's global lead in CBDC development could become a national security threat.
• Senior Japanese lawmakers have been calling on the government to step up research since February.
• The Philippine central bank has also commissioned research for a CBDC, Governor Benjamin Diokno confirmed Wednesday. Results will be due sometime next month.

See also: Bank of Japan Forms New Team to Explore Central Bank Digital Currency