RIEB Discussion Paper Series No.2022-06

Title

Asia Digital Common Currency as a Global (International) Currency

Abstract

This paper proposes “Asia Digital Common Currency (ADCC)” aiming at fostering Asian financial markets. We are proposing to issue a digital common currency controlled and managed under multilateral governance framework. As a result, the international currency, which should be an international public good, will be governed by a multilateral system. Under our proposed ADCC, each member country can carry out monetary policy independently. It also has a mechanism to maintain currency sovereignty in digital era. In addition, ADCC will contribute to the development of financial market infrastructures in Asia. It will foster the bond markets and standardize the Asian financial system. Asia lags behind Europe in monetary integration, but historically had experiences in common currency circulation. ADCC is an idea that should be thoroughly considered in order to develop the Asian and Japanese economies in the digital age.

Keywords

Digital currency; Common currency; International currency as an international public good; Currency sovereignty (Münzhoheit); Anonymity; Independence of monetary policy

JEL Classification

E42, F33, F36

Inquiries

Wataru TAKAHASHI
Faculty of Economics, Osaka University of Economics
Research Fellow, RIEB, Kobe University
E-mail: wtaka@osaka-ue.ac.jp

Taiji INUI
Expert, Japan International Cooperation Agency
Consultant, Asia Development Bank (ADB)