According to the Deputy Governor of the Bank of Japan, Masayoshi Amamiya, the country should continue to research the digital currency of the central bank (CBDC), even if it is not planned to be released in the near future.
According to Reuters, at today's seminar in Tokyohe said that due to the rapid development of fintech, public demand for CBDC in Japan could rise sharply. Therefore, it is very important for the country to form its own technological base.
Although Masayoshi Amamiya said that the central bank has no plans yet the issuance of the digital yen due to the potentialfiscal policy risks and difficultiessecurity arrangements that require further study. However, he believes that the Bank of Japan should be ready to respond to the launch of Libra and the digital renminbi.
This statement was made just a couple of days after 70 deputies of the country's ruling party announced their intention to propose to the central bank to develop a digital yen.
Despite the call to prepare the ground for its own CBDC, Masayoshi Amamiya believes that no central bank will give up cash in favor of digital.
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