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
Jamaica Central Bank issues CBDC
The Bank of Jamaica is testing a real-time central bank digital currency (CBDC).
Interest in Bitcoin in Venezuela is growing along with inflation
Last Thursday, Venezuelan President Nicolas Maduro raised the minimum wage in VES (sovereign bolivar) by 150% and the exchange rate for Petro, from VES 3,600 to 9,000, as the two indices are linked to each other. However, Petro has recently become mandatory for certain payments in the country, despite the increased cost.
