Copy link
Increase text size
Decrease text size
Link copied

BOJ Governor Haruhiko Kuroda sees no public demand for CBDC at the moment

Image: Bank of Japan (via YouTube)

Wed, 04 Dec 2019, 13:45 pm UTC

Currently, there is no demand for a central bank digital currency (CBDC) from the public, Bank of Japan (BOJ) Governor Haruhiko Kuroda said recently.

Speaking at the Symposium for the 35th Anniversary of the Center for Financial Industry Information Systems, Kuroda discussed innovations in the payments landscape including stablecoins.

Noting the much talked about stablecoin initiative from Facebook, Kuroda said that global stablecoins (GSC) such as Libra could offer “convenient payment services to many users” provided “legal certainty and technical stability are ensured.”

“[U]sers cannot continuously appreciate the benefits of GSCs unless various challenges and risks related to money-laundering, cyber-security, data protection, and consumer and investor protection are properly addressed. The spread of GSCs could have significant implications on the financial system and the transmission of monetary policy,” he added.

No public demand for CBDC

In order to counter the growing private stablecoin initiatives, Kuroda noted that a number of central banks, particularly in some European countries, have embarked upon their own projects to explore the possibility of CBDC issuance. However, he sees no public demand for CBDCs at the moment as the amount of cash outstanding in the country is still increasing.

“In Japan, the amount of cash outstanding is still increasing, and it does not seem that there is a demand for CBDC from the public at present. Nevertheless, the Bank of Japan has been conducting technical and legal research on this matter in order to stand ready when the need for CBDC may arise in the future. The Bank also needs to study the impact of CBDCs on financial intermediation,” he said.

Private digital currencies

Kuroda also pointed out that there is a number of private digital money denominated in Japanese yen. Underscoring the importance of interoperability between these private digital currencies, he said that such efforts are desirable for the national economy:

“If interoperability between private digital money increases, private money will approach more closely to central bank money in terms of general acceptability. In addition, the wide use of private digital money denominated in Japanese yen, which would be enhanced by competition and coordination among payment service providers, could help the Bank of Japan maintain the channels for providing public goods (i.e. financial and monetary stability).”

The central banks of a number of countries, including China, Switzerland, and Sweden, have been actively involved in CBDC research and development for quite some time, while some have been toying with the idea. Turkish President Recep Tayyip Erdogan has also mandated the development of the country’s CBDC to be finished by 2020. The British Virgin Island (BVI) is also developing its own digital currency, called BVI-LIFE, which will be pegged to the U.S. dollar 1:1.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $8,461.03 (+0.93%)
  • Ethereum (ETH) $161.83 (-0.49%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $323.20 (-3.86%)
  • Bitcoin SV (BSV) $278.81 (-2.02%)
  • Bitcoin (BTC) $8,461.03 (+0.93%)
Jan 24, 2020 (Friday)
Ripple CEO Brad Garlinghouse hints at the possibility of IPO
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Japan ruling party lawmakers to propose digital yen in February: Report
Hackers becoming more sophisticated as crypto exchanges bolster security measures: Chainalysis
Crypto Technicals: XRP/USD slips below 21-EMA, more weakness to follow
Tether launches new stablecoin backed by physical gold
Crypto exchange ErisX partners with Etale to offer new trading features
World Economic Forum launches blockchain-based supply chain traceability platform
Crypto Technicals: LTC/USD holds above 51 mark, finds strong support at daily cloud
Liechtenstein's Financial Market Authority approves ethereum-based real estate tokenized fund
Greece to extradite alleged BTC-e operator Alexander Vinnik to France after supreme court ruling
Agribusiness blockchain initiative Covantis selects ConsenSys as technology partner
Crypto exchange Binance invests in blockchain startup Numbers
Crypto Technicals: ETH/USD holds above 21-EMA and cloud support, further weakness on charts
Indian IT firm Mphasis to develop blockchain privacy-enhancing tech solutions with QEDIT
Crypto Technicals: BTC/USD extends weakness, eyes next major support at 110-EMA (8134)
Jan 23, 2020 (Thursday)
Amun lists inverse bitcoin ETP on SIX Swiss Exchange
World Economic Forum creates framework to help central banks design and deploy CBDC
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.