Japan's Finance Minister: China's central bank's digital currency may pose great risks

According to Bloomberg, Taro Aso, Japan's finance minister, believes that China's central bank's digital currency may pose great risks.

The report said that he warned countries not to use China's digital renminbi, and he believed that any country needs to do a lot of work before issuing central bank digital currencies.

Taro Aso said at the G20 meeting in Riyadh, Saudi Arabia, "Unless properly regulated, there is a lot of risk in central bank digital currencies. At least for now, I would say 'suspend' the issuance of government-backed digital currencies."

According to the communiqué issued by G20 on Sunday, the risks associated with digital currencies should be assessed and appropriately addressed before issuance. China's central bank digital currency program and Facebook's proposed private Libra stablecoin efforts are pushing central banks around the world to accelerate their understanding of the function and impact of digital currencies.

Aso believes that countries should be aware of the disruption that the global economy may cause if China abandons its digital currency in the future.

The Bank of Japan is currently working with other major central banks to evaluate the development of its own digital currency. Although Japan does not currently have a plan to issue digital currencies, lawmakers are increasingly worried that the digital renminbi being developed by the Chinese authorities may disrupt the stability of the dollar-centric economic order.

"We believe the digital yuan poses a challenge to the existing global reserve currency system and currency hegemony," said Norihiro Nakayama, a senior member of the Japanese ruling party.

The widespread use of digital renminbi may bring more currency transactions, expand its scope of influence, and may weaken the position of the yen.

Japan is still more dependent on cash than most other developed countries, and the Japanese government is trying to change that by offering credit cards or other electronic rebates for shopping. According to a government report released last month, cashless payments in Japan accounted for less than 20% of all transactions in 2016, compared to 65.8% in China.

Image source: Pixabay

By Liang CHE

This article is from bitpush.news. Please reprint the source.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Opinion

US SEC Chairman's pessimistic tone: Cryptocurrency businesses often non-compliant, filled with opacity and risk

During a Q&A session at the 27th annual Financial Markets Conference held by the Federal Reserve Bank of Atlanta ...

Blockchain

Bitcoin for $0.32, they dreamed back to 2009 today

On August 23, 2019, the history of cryptocurrencies may remember this day. In the normal market price of Bitcoin was ...

Blockchain

Long text: the change of the encrypted asset exchange and the risk challenge

Encrypted asset exchanges, like traditional exchanges, are products that develop to a certain period of time. With th...

News

Exclusive speech by Li Xiaojia, the Hong Kong Stock Exchange: In the 5G era, technologies such as blockchain will give birth to new exchanges and trading models.

On March 31, Li Xiaojia, Chief Executive Officer of the Hong Kong Stock Exchange Group, delivered a speech entitled &...

Blockchain

Bitfinex abolishes the minimum balance threshold of $10,000

Bitfinex, a Hong Kong-based cryptocurrency exchange, is now open to all traders as they canceled a minimum entry thre...

Blockchain

Hilariously Hot Crypto Drama: FTX and Genesis Global Trading Settle for a Cool $175 Million

Bankruptcy Court Approves $175 Million Settlement between Cryptocurrency Companies FTX and Genesis in New York