Author
Prof Akio Hoshi
Organisation/Institution
Gakushuin University
Country
JAPAN
Panel
Banking and Finance
Title
Some Private Law Issues Towards the Introduction of Digital Yen
Abstract
Preparations for the full-scale circulation of a central bank digital currency (CBDC) are steadily advancing worldwide. Front-runners such as the Bahamas, Cambodia, and Nigeria started issuing their own CBDCs from around 2020. The European Central Bank plans to finish its preparation phase for a Digital Euro in October 2025 and aims to start issuing the Digital Euro from around 2029. Japan is not an exception. The Bank of Japan’s official stance on a CBDC (or Digital Yen) is that it currently has no plan to issue one, but it must be fully prepared for the potential issuance. Consequently, many discussions have been held about the technical feasibility and legal status of the Digital Yen within and outside the government in Japan. Following those discussions, this paper provides updated information on the progress of the Japanese government and the Bank of Japan’s examination of the Digital Yen, and clarifies what design features the Digital Yen is currently supposed to have. This paper also discusses several legal issues that must be resolved before the Digital Yen is issued, with a focus on private law matters. They include (i) whether the legal tender status should be given to the Digital Yen, (ii) when and how the transfer of the Digital Yen should be effectuated, (iii) how and under what conditions an authentic holder of the Digital Yen should be protected from an unauthorised use of the Digital Yen, (iv) under what conditions the payment made by counterfeited or unlawfully copied Digital Yen should be treated as effective, and (v) how the legal enforcement should be made against the holders of the Digital Yen. Although many issues would be resolved by applying the existing legal doctrines governing bank transfers and existing digital money, some would require further statutory reform in Japan.
Biography
Akio Hoshi is a Professor at the Faculty of International Social Sciences, Gakushuin University, Japan. His research focuses on legal issues relating to corporate governance, corporate takeovers, and private deal-making. His articles have appeared in several international peer-reviewed journals, including the Asian Journal of Comparative Law and the Journal of Corporate Law Studies. Before joining the Gakushuin faculty in 2015, he had been engaged in private legal practice for over seven years at Nishimura & Asahi, one of Japan’s largest law firms, with a particular focus on cross-border M&A transactions. He holds a Bachelor’s degree in Law from the University of Tokyo, a Master’s degree in Law from Harvard Law School, and a Master’s degree in Finance from Cambridge Judge Business School.
