Cryptocurrencies Barely Used as Means of Settlement, Says Bank of Japan
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The cryptocurrency market remains to be a dangerous place as its volatility still "extraordinarily high," Bloomberg reports, citing Haruhiko Kuroda, Governor of the Bank of Japan (BoJ). Kuroda also doubts that cryptocurrencies are even used as a means of settlement.

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"Most of the trading is speculative and volatility is extraordinarily high," he said.

Kuroda's statements come after the BoJ launched the first phase of experiments with its own digital currency (CBDC). The regulator plans during Proof of Concept (PoC) Phase 1 to develop a test environment for the CBDC system.

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The regulator also wants to conduct experiments on the basic functions that "are core to CBDC as a payment instrument." Particularly, the BoJ wants to test an issuance, distribution, and redemption of CBDCs.

At the same time, Lars Rohde, the Governor of Denmark's central bank, considered that that technology giants' coming to the currency area could be a "real threat to the autonomy and independence of central banks." Rohde also added he is "tempted to ignore" cryptocurrencies, including bitcoin (EXANTE: Bitcoin), as they are very speculative assets "at best."

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