Bank of Japan abandoned the national cryptocurrency project

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4 weeks ago
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The Deputy Governor of the Bank of Japan, Masayoshi Amamiya, said on Saturday that the Central Bank of Japan does not see an opportunity to improve the effectiveness of its monetary policy by issuing digital currency.

Japanese academics had previously stated that the country’s central bank could overcome the “zero lower limit” at interest rates — a situation in which the instruments for stimulating the economy disappear and interest rates fall to zero by issuing a national cryptocurrency.

In theory, digital currencies would allow the central bank to avoid the side effects of negative interest rate policies, which are expressed in surplus cash notes thereby motivating citizens to spend cash rather than save them.

Amamiya said:


“Currently, the Central Bank has no plans to get rid of cash. Scriptactive are not used for everyday payments and settlements, by and large it is a speculative investment”


Amamia is opposed to this idea, saying that charging interest on digital currencies will be relevant only if the Central Bank completely excludes cash from circulation. Otherwise, in his opinion, citizens will simply convert digital currencies into cash to avoid paying interest.