The Japanese central bank studies digital currencies

The Bank of Japan Deputy Governor (BOJ) stated that the organization must be ready to issue a central bank digital currency (CBDC) if the public demand spikes dramatically to meet the technical development. Art.

Follow report by Reuters on January 30, in a strong statement about the future vision for the bank, Masayoshi Amamiya told attendees at a conference that:

“The pace of technical innovation is very fast. Depending on how things happen in the world of processing systems, the public demand for CBDC may skyrocket in Japan. We have to be willing to respond if that happens. ”

BOJ: There is no plan to release CBDC soon

Unlike a private, decentralized cryptocurrency like Bitcoin (BTC), CBDC is a digital currency issued by a central bank, with legal status and other natures. of centralized fiat money.

Although Amoyashi did not describe the issuance of the CBDC, it would greatly affect the effectiveness of monetary policy and its impact on interest rates, asset prices and bank lending, but he identified technical improvements. in payment systems is an area worth keeping a close eye on:

“The mechanism of transmission (…) can become more complex and difficult (broken) if the processing system changes.”

The deputy governor also acknowledged academic research on the usefulness of CBDC in maintaining negative interest rate policies – a characteristic of Japanese monetary policy for many years, ahead of recent developments in Europe. Au, and think that this aspect is worth considering.

However, as of now, the BOJ does not seem to be planning to issue digital currency anytime soon, as the bank continues to assess the possible impact on monetary policy, as well as security factors. .

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A global perspective in early 2020

This month, the World Economic Forum (WEF) – in cooperation with a number of major central banks in the world – revealed the CBDC policy making toolkit, with ideological guidance and three-dimensional design. Possible CBDC's: retail, wholesale and hybrid.

In the United States, J. Christopher Giancarlo – former chairman of the Commodity Futures Trading Commission, recently confirmed that a nonprofit organization has now been established to closely study the prospect of dollar conversion. la into a fully blockchain-based cryptocurrency.

Both the Digital Dollar platform and project are supported by global consulting firm Acckey PLC, which has been linked to the Swedish central bank's own initiative for a digital currency, e -krona.

Recently, reports emerged that the central banks of Hong Kong and Thailand have come closer to deploying a common CBDC to serve cross-border payments.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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