Ja­pan has no plans to is­sue dig­i­tal cur­rency

Banking Frontiers - - Regulator -

Bank of Ja­pan has no plans to is­sue a cen­tral bank dig­i­tal cur­rency (CBDC), deputy gov­er­nor Masayoshi Amamiya said at an IMF con­fer­ence. He said this is on ac­count of fi­nan­cial sta­bil­ity con­cerns and elab­o­rated is­su­ing a dig­i­tal cur­rency di­rectly for con­sumers - whether or not on a blockchain - could un­der­mine the ex­ist­ing two-tiered sys­tem. He ex­plained that cen­tral banks only give ac­cess to lim­ited en­ti­ties such as pri­vate banks, which face con­sumers di­rectly in a sec­ond tier - a process he de­scribed as ‘the wisdom of hu­man be­ings in his­tory to achieve both ef­fi­ciency and sta­bil­ity in the cur­rency sys­tem’. As such, hav­ing a dig­i­tal cur­rency backed by the cen­tral bank will change the sys­tem with­out prov­ing to be fi­nan­cially sta­ble, he added. In this re­gard, the is­suance of cen­tral bank dig­i­tal cur­ren­cies for gen­eral use could be anal­o­gous to al­low­ing house­holds and firms to di­rectly have ac­counts in the cen­tral bank. This may have a large im­pact on the afore­men­tioned two-tiered cur­rency sys­tem and pri­vate banks’ fi­nan­cial in­ter­me­di­a­tion, he added.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.