TOKYO (Reuters) – Central banks need to have a better understanding of the potential benefits and risks associated with the release of their own digital currencies, and to look for ways to mitigate the risk of ‘ Bank of Japan Deputy Governor, Masayoshi Amamiya said on Thursday.
Bank of Japan Deputy Governor, Masayoshi Amamiya speaks at a Reuters Newsmaker event in Tokyo, Japan on July 5, 2019. REUTERS/Issei Kato
By issuing their own digital currencies that have central banks that can act as a bridge to private-sector financial flows, and to streamline the rules, Amamiya said.
All the same, such a practice may also stifle private-sector financial innovation, and to draw money out of bank deposits in commercial banks if they are to address the issue of low-cost, digital-currencies, ” he said.
“If the countries of the issue of the central bank of digital currency, they will need to have a comprehensive study on what the impact is on their fulfillment, and financial management systems,” Amamiya said in a speech in Tokyo, Japan, is in the system.
Some of the emerging economies are looking seriously at the issue of the central bank, the digital currency’s (CBDC), because of the need to fight against the laundering of money, or in order to deal with a lack of training, financial and infrastructure.
In Japan and in many other advanced economies, do not face such problems, they need to be immediately CBDCs, ” he said.
“In contrast to the emerging economies, we cannot and should not jump immediately to” in the direction of the issue of the CBDCs, Amamiya said.
The current stance in the advanced economies has been to deal with the laundering of money through the use of regulation and supervision in lieu of release CBDCs, ” he said.
Still, the BOJ will have to set up a team within the bank is looking to the CBDCs and to work closely with its international colleagues on the topic, as Amamiya said.
Facebook’s (FB.D) with the launch of the Scale cryptocurrency has prodded the central banks of the fast-track reviews of the issue of the digital currency.
The central banks of the united Kingdom, and the euro-zone, Japan, Canada, australia, Sweden, Switzerland, and last month it announced a plan to share experiences in order to look at, as is the case with the issue of digital currencies, in the midst of a growing debate about the future of money.
Reporting by Leika Kihara; Editing by Tom Hogue & Shri Navaratnam