Bank Of Japan Doubts Legitimacy Of Crypto Transactions
The Bank of Japan doesnât seem to intend on issuing cryptocurrency anytime in the near future. The doubts on Bitcoin and other digital currencies will quickly win a mainstream appeal for an option of payment according to Masayoshi Amamiya.
The central bank deputy governor who shared his views on the issue as a guest lecturer for an autumn annual meeting of the Japan Society of Monetary Economists held on 20th October.
Future of Money is the title of the lecture and speaks about the future of digital currency and digital currency in the country. It's very rare for a top-level executive for the Bank of Japan to publicly discuss the monetary system.
Amamiya continued to say that it is likely that cashless transactions will become a much more standard method of payment at some point in the future.
âThere are many aspects we need to look into, whether it would actually contribute to improving the efficiency of financial policies or financial stability.â
He also noted that central banks in some countries are already at a stage of exploring the merits of issuing cryptocurrency.
According to The Asahi Shimbun:
âHe cautioned that if digital money replaced not only cash held by the central bank, but also deposits, it could âhave an impact on the bankâs ability to steer the economy" as the function of financial intermediation by banks would be "sharply reduced.â
The bank's deputy governor said that the Bank of Japan has no current plan to issue a virtual currency which could be used by a widespread audience for payment transaction by individual consumers.
He went onto say that there are a few hurdles to jump over before adopting digital currencies in day to day life as there would be massive costs to conduct transactions testing to build up confidence in the system.
Amamiya continued to say:
âIt seems to me that the hurdle is extremely high to popularize (a cryptocurrency) as a payment system.â
The crypto markets seem to be holding steady today as the leading currency, Bitcoin is priced at $6,488, Ethereum is priced at $204.62 and the third leading currency, XRP is priced at $0.4547. All of these are in the red currently at the time of writing.
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