Former top Japanese financial regulator Toshihide says China's progress toward issuing a central bank digital currency (CBDC) will have a huge impact on how quickly advanced economies follow suit.

Endo, who was Financial Services Agency (FSA) commissioner until 2020, told newsmen that "If it launches a CBDC, China will be armed with huge social infrastructure.

"It would be a move hard to ignore for other nations. Japan and other advanced nations will face the tough question of how quickly they should follow," said Endo, who retains close ties with FSA and Bank of Japan BOJ officials.

What you should know 

Central banks have accelerated efforts to develop digital currencies to modernise financial systems. The People's Bank of China is leading after launching trials, whereas the Bank of Japan (BOJ) only began its CBDC project in April.

U.S. officials on Monday voiced scepticism about CBDCs, However experts like Endo believe such caution may change if the world's second-largest economy introduces one.

In Nigeria, plans are underway to introduce digital currency before the end of 2021.

The introduction is expected to boost financial inclusion and deepen access to financial services in Nigeria.