Advertisement

Why Japan will need more time to develop its own CBDC according to a former BOJ executive

Why Japan will need more time to develop its own CBDC according to a former BOJ executive

Quick take

1 minute read

  • Hiromi Yamaoka has recently said that the country is going to need a few years before it will be able to issue its own central-bank digital currency.
  • Speaking in an interview, the former head explained that the Japanese bank is worried that having a centralised digital currency could have an impact on the massive outflows from private bank deposits.

The former head of the payment and settlement system department at the bank of Japan, Hiromi Yamaoka has recently said that the country is going to need a few years before it will be able to issue its own central-bank digital currency.

Speaking in an interview earlier this week with Reuters on the 17th of November, the former head explained that the Japanese bank is worried that having a centralised digital currency could have an impact on the massive outflows from private bank deposits.

He even went on to add that there is no pointing issuing a central-bank digital currency if it isn’t used on a wide scale as he went on to say:

“The fundamental question, and a very tricky one, is how to ensure private deposits and a CBDC co-exist. You don’t want money rushing out of private deposits. On the other hand, there’s no point issuing a CBDC if it isn’t used widely.”

Both the bank of Japan and the private sector are working together according to Yamaoka in order to make a digital settlement much more convenient and easier for users. Adding that to the private sector has a “key role to play“, the former head said that these settlement platforms will be interoperable.

As Japan mulls over the potential of releasing its own CBDC, China is already well ahead when it comes to the development of its own digital yuan. The coin is allegedly going to be released later this year and it will be interesting to see how it fares in the industry.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related TAGS:

You can share this post!

Advertisement