The Deputy head of the Bank of Japan Masayoshi Amamiya (Masayoshi Amamiya) stated that his financial institution see opportunities to improve the effectiveness of monetary policy through the production of digital crypto currency Central Bank (CBDC). The Japanese Central Bank has refused from the further consideration of this scenario, as came to the conclusion that while there are Fiat cash, the Bank will not be able to overcome the zero lower bound on nominal interest rates and stimulate the economy by issuing cryptocurrency.
Academic theory suggests this development associated with the simplification of the calculation of interest on deposits with the introduction of cryptocurrencies and the stimulation of spending by individuals and companies. However, Amamiya is confident that users may choose to convert cryptocurrency into cash, to avoid unnecessary costs. However, he also stressed that the cryptocurrency is rarely used for daily payments, but rather as a speculative investment.
Recall that, according to the July report of the Committee on economic and monetary Affairs (ECON) of the European Parliament, the issue of crypto-currencies by Central banks (CBDC) may increase competition in the stock market, and to destroy her by strangling her traditional tokens. Earlier, the Deputy Governor of the Central Bank of Italy Fabio Panetta (Panetta Fabio) said that Central banks are not ready to release CBDC. But analysts of the Bank for international settlements (BIS) warned that digital currencies Central banks can threaten global financial stability.
Spring Masayoshi Amamiya said that the launch of digital currency could have a negative impact on the existing dvuhruchevoj system, implying the responsibility of the Central Bank for the issue of banknotes and reliability of payment instruments, as well as operational activities of private banks to provide services to the public under the supervision of the regulator.