Central banks won't issue digital currency if it risks eliminating cash, Bank of Japan official says

Cryptocurrency • July 5, 2019, 5:13AM EDT
UPDATED: July 5, 2019, 10:32AM EDT
The Block

A Bank of Japan official believes that central bank digital currencies (CBDCs) will not have widespread backing, Reuters writes.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Deputy Governor Masayoshi Amamiya explained that “eliminating cash would make settlement infrastructure inconvenient for the public, so no central bank would do this."

He also added that people would still opt for cash to avoid charges as long as negative interest rates applied to digital currencies, thus limiting adoption. In other words, he hinted that the decline of cash is necessary for cryptocurrency adoption.

About Author

Isabel is The Block's London and European reporter. She previously reported for Reuters in Madrid and London, following on from her time as a freelance journalist for the Guardian and the New York Times. She has a Bachelors in War Studies from King’s College London and a Master of Philosophy from the University of Oxford. Conflict of Interest: Edward Woodford, the CEO of SeedCX, is Isabel's brother. She does not report on any issues related to Seed or advise other authors in any regard.

More by Carol Gaszcz

More by Isabel Woodford