National crypto not planned by Bank of Japan

Posted 22 October, 2018

Masayoshi Amamiya, Bank of Japan Deputy Governor, doubts about central banks' cryptocurrencies.

During the recent meeting, Masayoshi Amamiya stated that such cryptos hardly can boost the effectiveness of the monetary policy, as reported Reuters. He stated the digital coins could show good performance only after central bank completely get rid of fiat cash.

Meanwhile, some market experts believe that the cryptos issued by the central banks can help countries to cope with the "zero lower bound" (period when they have no means to boost the economy seeing zero interest rates). In addition, they think that coins can bolster consumer demand.

"In order for central banks to overcome the zero lower bound on nominal interest rates, they would need to get rid of cash from society," noted Masayoshi Amamiya at the meeting of academics in Nagoya. 

At the same time, as he added, this scenario is not the best choice for the regulators, since the cash is still one of the main payments means in Japan.

BOJ Deputy Governor mentioned that the switching of the effective currency to central banks' cryptos would bring many challenges and problems, whereas people associate cryptos with investment speculations and price volatility.

Thus, Masayoshi Amamiya said that BOJ has no plans to issue its own cryptocurrency, that would be widely used by people as a payment means.

It is worth mentioning that he made a similar comment in April, saying that cryptos affected the financial system.

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22 October, 2018 14:15

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