Japan has no plans on issuance of a central bank digital currency (CBDC) until public support, Bloomberg has learned, citing a senior BOJ official.
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According to Kazushige Kamiyama, the BOJ's payments and settlement department head, the regulator is in no rush as "there is no way we can proceed without gaining sufficient understanding from the Japanese public."
Kamiyama also says the BOJ has no plans for replacing fiat money as the digital currency will only enhance the transaction ecosystem and coexist with cash and other forms of electronic payment:
"The digital currency won’t be useful to deepen negative rates because there will be banknotes."
Earlier in October, the BOJ announced its plans to test the technical feasibility of the core functions and features required for the CBDC through a Proof of Concept.
In an official statement, the bank added it will also consider the need for a pilot program if necessary. While the bank has no plans to roll out its own CBDC, it plans to prepare thoroughly "to respond to changes in circumstances appropriately."
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