Bank of Japan deputy governor: Japan must be ready to issue central bank digital currency

According to Cointelegraph reported on January 30, the Deputy Governor of the Bank of Japan said that if the public's demand for the development of blockchain technology surges, the institution must be prepared to issue the central bank's digital currency (CBDC).

yen-1576311_960_720

Image source: pixabay

Reuters reported on January 30 that Masayoshi Amamiya made a strong statement on the Bank of Japan's vision for the future at a seminar, saying to participants:

"Technological innovation is very fast. In Japan, public demand for CBDC may surge, depending on the development of the settlement system. If this happens, we must be prepared to respond.

Bank of Japan: No urgent CBDC plan yet

Unlike private, decentralized cryptocurrencies, such as Bitcoin, CBDC is a digital currency issued by the central bank.

Although Amemiya does not believe that the issuance of CBDC will have a significant impact on the effectiveness of monetary policy and its impact on interest rates, asset prices and the efficiency of bank loans, he does believe that technological innovation in the settlement system is an area worth paying close attention :

"If the settlement system changes, this transmission mechanism may become more complicated and more difficult to break."

The deputy governor of the Bank of Japan also acknowledged that the academic community had studied the role of the CBDC in maintaining a negative interest rate policy and said it was "very worth studying." Negative interest rate policy has been a feature of Japanese monetary policy for many years, far ahead of recent developments in Europe.

Nevertheless, as of now, the Bank of Japan has no apparent plan to issue digital currency immediately, as it is still assessing the impact of monetary policy and security factors that may be overlooked.

Global outlook in early 2020

This month, the World Economic Forum (WEF), in collaboration with some of the world's major central banks, released a CBDC decision maker toolkit to guide people in thinking and designing three possible variants of CBDC in retail, wholesale, and hybrid.

Former US Commodity Futures Trading Commission (CFTC) chairman J. Christopher Giancarlo recently confirmed that the United States has now established a Digital Dollar project and foundation to closely study the conversion of US dollars into The prospect of "blockchain-based all-electronic money".

Both the foundation and the digital dollar project are supported by global consulting giant Accenture PLC, which has been an affiliate of the Swedish central bank's digital currency program e-krona.

Recently, there are reports that Hong Kong and Thailand's central banks have made a step towards the goal of implementing a joint CBDC in cross-border payments.

Original: https://cointelegraph.com/news/bank-of-japan-must-be-ready-to-issue-digital-currency-says-exec

Author: Marie Huillet

Compilation: Libert

Source (translated): Babbitt Information (http://v1.8btc.com/550704)