Cryptocurrency News From Japan: Jan. 20–24 in Review

This week’s headlines from Japan include several central banks collaborating on digital currency research, Binance removing the Japanese yen from its platform, Japan’s Liberal Democratic Party investigating digital assets, comments from Japan’s Deputy Prime Minister on digital currency research importance, and Coincheck paying out its first Lisk staking reward. 

Check out some of this week’s crypto and blockchain headlines, originally reported by Cointelegraph Japan.

Japanese political party proposes digital currencies

Japan’s ruling Liberal Democratic Party aims to propose a national digital asset in spring of this year, according to some reports. A parliamentary group of 70 lawmakers will reportedly submit their proposal in February and will note how the currency will act with regard to concerns about individual data security and money laundering. 

Bank of Japan and several other central banks evaluate digital currencies

News of action from Japanese lawmakers coincides with the debut of a research group of global central banks — including the Bank of Japan (BOJ) — that will study the possibilities and limitations of central bank digital currencies, or CBDCs.

The Financial Stability Board, among others, will also participate in the effort. Bank for International Settlements Innovation Hub director Benoit Coeure will sit as the group’s co-chair, alongside the Bank of England’s Deputy Governor Jon Cunliffe.  

Binance deletes Japanese yen currency pairings

Binance reportedly removed the Japanese yen from its exchange, just days after seemingly adding support for the fiat currency. While the option initially appeared on the exchange’s list of fiat spending options, it was subsequently removed.

A Binance spokesperson told Cointelegraph Japan that the yen will be restricted on the platform until support for the fiat eventually launches through a partnership with transaction processor Simplex.

Japanese Finance Minister says no digital assets on the horizon

While policymakers are showing clear signs of interest in CBDCs, Japan’s Minister of Finance and Deputy Prime Minister Taro Aso said that the immediate issuance of such an asset is not an immediate priority.

Ato noted the importance of the CBDC collaborative group’s research efforts, adding that a digital currency must have convenience and credibility. However, he added that, “There are no plans to issue digital currencies at this time.” 

Coincheck crypto exchange doles out first Lisk staking reward

Tokyo-based crypto exchange and wallet Coincheck settled its first Lisk (LSK) staking payout this week, totalling 2,251.9 LSK ($1,800). The exchange first announced Lisk staking capabilities on Jan. 9.

Staking rewards are a byproduct of the proof-of-stake consensus algorithm, that was first introduced by Sunny King and Scott Nadal via the  Peercoin (PPC) white paper in 2012.

Within such a system, token holders can “stake” their assets to help maintain the network, and in return, receive interest on their holdings.