According to the New York Times, Japanese Central Bank Vice Chairman Masayoshi Amamiya, speaking at a meeting in Nagoya, expressed doubts that cryptocurrencies issued by central banks could improve existing currency systems and said that the Central Bank of Japan has no intention of issuing its own cryptocurrency.
The article also states that some financial experts consider such cryptocurrencies to be a tool through which central banks can control the economy if interest rates fall to zero.
According to this theory, cryptocurrencies issued by central banks provide the central bank with the opportunity to stimulate the economy by charging more interest on deposits from individuals and legal entities, which in turn encourages them to spend more money.
However, Amamiya believes that charging interest from cryptocurrency issued by the Central Bank would only work if the Central Bank eliminated fiat from the financial system. Otherwise, people will continue to convert crypto to fiat to avoid paying interest.
However, eliminating fiat in Japan is not possible because fiat is still a popular payment method and cryptocurrency is subject to speculation and is not a stable means of payment.
You May Also Like
Issue of national cryptocurrency. Sovereign revenues.
The sovereign is the highest person who has unlimited supreme power in the state for an indefinite period. Is there a threat to decentralized cryptocurrency in the issuance of national crypto-money?
The Venezuelan bolivar is planned to be revived through Petro
Venezuela is seeking to end once and for all the hyperinflation that has virtually destroyed the bolivar, forcing the government to create a new currency - a sovereign bolivar, which will be pegged to the Petro cryptocurrency. The country's President Nicolas Maduro announced the release date of the new currency - August 20 - and said that the country needs an “economic revolution.”
