Technical innovation takes place at a breakneck pace. Depending on how things work out in the world of payment systems, the public demand for Central bank digital currency (CBDC) may soar in Japan. Therefore, “Bank of Japan, the country’s central bank, must be ready to issue a digital currency if there is a security situation,” BOJ Deputy Governor Masayoshi Amamiya announced.
BOJ Deputy Governor Masayoshi Amamiya
Amamiya’s opinion is arguably the strongest ever so far about the potential of digital currencies. Notably, Amamiya is not interested in digital currencies. He stressed that if CBDC “replaces private deposits, it could erode the commercial banks’ credit channels and have a negative impact on the economy.”
The BOJ has been studying cryptocurrencies for several months now in partnership with five other major central banks to explore digital currencies, including Bank of England, European Central Bank, Bank of Canada, Swiss National Bank, and Sveriges Riksbank (Sweden).
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