The official representative of the Bank of Japan (BoJ) has excluded the use of the central bank’s cryptocurrency, because for this the country will have to abandon the use of cash.
According to the message
Reuters, Masayoshi Amamiya, deputy governor of the Japanese Central Bank, said negatively on Friday that central banks could increase the effectiveness of their policies on negative interest rates by issuing their own digital currency.
The problem comes down to the fact that if the Bank of Japan issues a digital yen and sets a negative interest rate, individuals and legal entities will actually be charged for owning such cryptocurrency. As a result, he argued, institutions and users will begin to get rid of digital currency and instead store cash. Amamiya concluded:
“To overcome the nominal zero lower limit, central banks will need to liquidate cash. The liquidation of cash will make the settlement infrastructure inconvenient for the public; not a single central bank will do this. ”
Last year, the deputy president of the Bank of Japan, Masayoshi Amamiya, confirmed
its negative attitude to the creation of digital currencies emitted by central banks. Then he said that such digital currencies are unlikely to improve existing monetary systems. He also confirmed the previously expressed position that the Bank of Japan does not plan to issue them.