‚No single digital currency will dominate the world,‘ says Bank of Japan now



Public policy makers in Japan seem disconcerted by the progress of China’s CBDC initiative.

‚No single digital currency will dominate the world‘, Bank of Japan now saysNOTÍCIAS

There seems to be a disagreement among the highest echelons of Japan’s government over the threat posed to the nation by China’s CBDC. Last week Kenji Okamura, Japan’s deputy finance minister for international affairs, expressed concern about his neighbour’s efforts, saying that „the advantage of the pioneer is something to fear“.

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This Thursday’s statement by Kazushige Kamiyama, who leads the CBDC efforts of the Bank of Japan (BOJ), seems to contradict that sentiment. He said that, on the contrary, the pioneer’s advantage could easily turn into a disadvantage and Bitcoin Code that no single digital currency would be dominant:

„I don’t think a single digital currency will dominate the world, as long as each country makes every effort to improve its settlement system“.
Kamiyama said the BOJ is closely monitoring the progress of other nations in the area and hopes to learn from their efforts:

„We would like to monitor what other central banks are doing and learn from them, not just from China, but from other countries.
He also said that when and if the BOJ issues a CBDC, there is a possibility for the bank to implement ceilings on the amount issued and how much of the assets the entities are legally allowed to hold. He suggested that such restrictions could be put in place to prevent capital flight from commercial banks, elaborating that „It is an option. But it is not something we can say will definitely happen. ”

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While the CBDC race around the world is in full swing, policymakers seem to be struggling to find the right approach to what remains a new idea.