Japan’s central bank, Bank of Japan (BoJ), has announced that it does not have any plans to issue a central bank digital currency (CBDC) but it does not totally reject the idea.
Speaking at a conference with the country’s Financial Services Agency (FSA) and the International Monetary Fund, BoJ Deputy Governor Masayoshi Amamiya said that issuing a national cryptocurrency may threaten the current two-tiered financial system it has with private banks.
As with other central banks, the BoJ has a two-tier system where it does not directly handle consumers in the general public and instead assigns that responsibility to the private banks under it.
“in this regard, the issuance of central bank digital currencies for general use could be analogous to allowing households and firms to directly have accounts in the central bank. This may have a large impact on the aforementioned two-tiered currency system and private banks’ financial intermediation.”
The idea of a national cryptocurrency may not be possible now but the Deputy Governor did not totally reject the idea. The BoJ has already been researching blockchain technology and its application to its business operations.