Bank of Japan Has No Plans for Central Bank Crypto

The Bank of Japan (BoJ) has stated that it had no plans to issue to issue a central-bank digital currency (CBDC).

At a recent conference between the International Monetary Fund (IMF) and Japan’s Financial Services Agency on Monday the BoJ’s deputy governor Masayoshi Amamiya suggested that a CBDC could undermine the bank’s two-tier system and destabilize it.

Amamiya suggested, “…the issuance of central bank digital currencies for general use would be analogous to directly allowing households and firms to have accounts in the central bank.”

The current system at the BoJ only allows access to private banks and other limited financial bodies.

Recent comments by the bank have been cool towards cryptocurrencies, despite the popularity in the country. Cryptocurrency crime has dampened JoC enthusiasm, so much so that the bank has recently surveyed its customers to get their point of view on digital currencies.

The one-page survey entitled ‘Let’s think about cryptocurrencies!‘ has appeared on a financial education site run by the bank. It asks such questions as “should cryptocurrencies be considered as money?” and whether you could profit from them and if is it likely they would be stolen. The survey gives the public a basic overview of digital currency but points out that there is no central bank to back them up.

The bank, despite its “wait and see” stance, has started to consider the viability of cryptocurrency’s underlying blockchain technology for business applications. The bank’s Project Stella initiative has conducted research on how distributed ledger technology can create new securities settlement systems.

Outside of the banking system, cryptocurrency continues to flourish in Japan. China and India’s attempts to outlaw the new technology have not been duplicated in Japan. Firm public and business support have made Japan a cryptocurrency haven, with a rise in domestic firms adopting cryptocurrency or blockchain technology within the country.

Figures released recently showed that 3.5 million Japanese are now trading in cryptocurrency as the government continues to work towards full legalization and regulation of ICOs.

 

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