Bank of Japan Deputy Governor: Even if digital currencies are issued, central banks will still be the ultimate lenders

According to Jin Shi news, the Bank of Japan's deputy governor, Yumiya Masaka, said that the Bank of Japan will study the advantages and disadvantages of digital currencies. Even if digital currencies are issued, central banks in various countries will still be the ultimate lenders, guiding monetary policy by controlling the flow of digital currencies. When considering the issue of central bank digital currency, a comprehensive study must be conducted to influence its impact on the national settlement and financial system. If central banks provide low-cost digital currencies, this could stifle innovation in the private sector.

He also pointed out that instead of focusing solely on central bank digital currencies and private sector digital currencies, we should focus on how they will interact with each other. If households and businesses start to favor central bank digital currencies over bank deposits, it will cause capital transfers and affect the country's financial intermediaries. "Cashless" does not change the basic positioning and role of the central bank.