Bank of Japan Has No Plans to Launch Its State-Issued Cryptocurrency

According to Bank of Japan and its Deputy Governor Masayoshi Amamiya, a national digital coin may jeopardize the traditional financial system established in developed countries. The Bank of Japan has no plans to issue its own crypto, he said.

Present as attendees were representatives of the International Monetary Fund (IMF) and the Japanese Financial Services Authority (FSA), who were told by the the governor that the Bank of Japan had no immediate plans to mint its own crypto.

The main role of central banks is to combat the “the turmoil caused by multiple payment instruments.” Which is why the Bank of Japan was given the exclusive role to issue “central bank money,”. In the two-tiered modern financial system, private banks provide payment services to the general public and allocate financial resources to the economy through loans and credits.

The governor issue brought his concerns to light about the issuance of central bank digital currencies that will grant households and businesses direct access to central bank accounts. A representative from Bank of Japan warned

“This may have a large impact on the two-tiered currency system and private banks’ financial intermediation”, 

Amamiya also believes that central banks should always pay attention to ongoing innovation and follow technological advances in order to provide societies with the best financial infrastructure.

He mentioned, Bank of Japan understands the importance of understanding innovative technologies not only for maintaining stability, but also for seeking their application in the future.

These days, most central banks in different nations and financial authorities are cracking down on centralized, state-sponsored cryptocurrencies. Proposals to issue such digital coins, with or without blockchain, have been made in several countries over the past few months. They have been seen as inferior alternatives to decentralized cryptocurrencies, like bitcoin, that would allow governments to use the technology without losing control over the financial system.

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