Bank of Japan: "Digital yen will only be released with public support"

According to the head of the payment system department of the Bank of Japan, the decision to issue the state cryptocurrency has not yet been finalized and will depend on public support.

Head of Digital Yen Research Kazushige Kamiyama (Kazushige Kamiyama) considers, that the Bank of Japan will not be able to continue work on the issue of state cryptocurrency, not receiving "sufficient support from the Japanese public".

Kamiyama added, what, If the Japanese Bank releases digital yen in the future, the goal of cryptocurrency will be to improve the transaction system and coexist with cash and other forms of electronic payments. According to him, state cryptocurrency will not be an instrument of monetary policy.

“We clearly state, that banknotes and digital currency will coexist. Digital currency won't be useful to amplify negative rates, because there will be banknotes, to which they do not apply ", - said Kamiyama.

Coronavirus pandemic has contributed to an increase in the number of non-cash payments in Japan, so all over the world, which demonstrates the growing demand for alternative and more convenient transaction methods.

According to Kamiyama, to expand access to government cryptocurrency, even companies from the fintech industry could act as an intermediary. He added, what should be discussed, should these firms have accounts with the Bank of Japan.

Kamiyama also said, that the Bank of Japan should keep up with the research of the People’s Bank of China, which could be the first major central bank, issuing state cryptocurrency.

Recall, that in the first half of the month, Governor of the Bank of Japan Haruhiko Kuroda (Haruhiko Kuroda) stated, what spring 2021 the central bank will begin testing its own cryptocurrency.

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