Hiromi Yamaoka, former Head of the Bank of Japan’s (BOJ) Financial Reconciliation Department, has warned against using digital central bank money (CBDC) as part of the country’s monetary policy.
Bloomberg’s According to the news dated January 31 Yamaoka, a former BOJ official who pioneered digital currency research, said that the central bank’s digital currency is a Money Politics should not see it as an option, that serious damage to the economy He said he could. Yamaoka said in a statement;
While some people say that negative interest rates can work more effectively with digital currency, I don’t think so.
said.
With negative interest rates as his biggest concern, Yamaoka thinks the declining value of the fiat currency will affect the public as the digital yen becomes a leading tool for mass payments. He also warned that the digital yen could pose a risk to financial stability and have dire consequences for the economy.
He stated that he was completely against the idea of the central bank using the digital yen to gain extra policy advantage, but said that Japan’s that payment systems should change with the help of digital money Yamaoka said that it is also evident;
It is an obvious fact that the current payment system cannot stay as it is. So making the digital currency better and cheaper would be in everyone’s interest.
made statements.
Yamaoka also plans to issue the BOJ’s digital currency due to the advances made by central banks in China and other countries. have no time to lose stated.
BOJ announced in October 2020 that the digital central bank coin (CBDC) outline of a three-stage test had published. Focusing on testing proofs of concept, the first phase of testing started in September 2021 is expected to be completed by March this year.