Former Bank of Japan employee advises against using digital yen – Bits Media

Former head of the financial regulation department of the Bank of Japan (BOJ) Hiromi Yamaoka advised against using government digital currency, which the country's authorities want to put into circulation.

The former head of the department headed the central bank research into the effectiveness of using digital money. According to him
opinion, digital currency of the Central Bank will reduce the cost of fiat, which will lead to an economic crisis.

Yamaoka is confident: once the digital yen becomes firmly entrenched in Japan's financial system and becomes a mainstream payment instrument, the value of the national fiat currency will decrease significantly. it, according to a specialist, will have catastrophic consequences for the economy.

Yamaoka is currently working on developing a private digital currency., which was initiated by a consortium from 74 Japanese financial companies. The consortium includes Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, Mizuho Financial and others. The alliance is led by the cryptocurrency exchange DeCurret. They plan to put the currency into circulation before the end 2022 of the year.

Earlier, Bank of Japan Governor Haruhiko Kuroda said, that after careful discussion with the public and numerous tests, the decision on the advisability of launching a digital yen will be made in 2026 year.