Developed countries don't need digital currency, Bank of Japan spokesman said

The Deputy Governor of the Bank of Japan stated thatit is not profitable for developed countries to launch the digital currency of the central bank (CBDC), since at significant costs the positive effect will be negligible. 

Speaking at the Bank for International Settlements forum,Masayoshi Amamiya said that CBDCs can only bring real benefits to developing countries with immature payment infrastructure, such as Cambodia. But for countries like Japan, this is now an unjustified step.

According to him, existing currency exchange rates in developed economies,payment and settlement systems operate stably and safely. Their transition to new technologies will be difficult, and there is no particular need for it yet.

Assuming CBDC will function withlower operating costs compared to existing solutions and cryptocurrencies, entrepreneurs are likely to give preference to them, but in the end this will slow down the development of private payment systems and will hinder innovation.

As an additional argument againstthe launch of a national digital currency, the Deputy Governor of the Bank of Japan called the risks of absolute centralization of the system. Since the Central Bank in this case may become the only repository of information about transactions in the entire country, which raises questions about the method of storing and protecting personal financial data.

Although Masayoshi Amamiya believes that at the momentJapan does not need a CBDC, but calls for continued research in this direction in order to create the necessary technical base if the situation changes dramatically.

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