The former head of the financial regulation department of the Bank of Japan (BOJ), Hiromi Yamaoka, advised against using the state digital currency, which the country’s authorities want to put into circulation.
The former head of the department led a study at the central bank on the effectiveness of the use of digital money. According to him
opinion, the digital currency of the Central Bank will reduce the cost of fiat, which will lead to an economic crisis.
Yamaoka is sure that as soon as the digital yen is firmly rooted in the Japanese financial system and becomes a mass payment instrument, the value of the national fiat currency will noticeably decrease. This, according to the expert, will have catastrophic consequences for the economy.
Now Yamaoka is working on the development of a private digital currency, which was initiated by a consortium of 74 Japanese financial companies. The consortium includes Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, Mizuho Financial and others. The alliance is led by the DeCurret cryptocurrency exchange. It is planned to launch the currency into circulation by the end of 2022.
Earlier, the governor of the Bank of Japan, Haruhiko Kuroda, said that after careful discussion with the public and numerous tests, a decision on the advisability of launching a digital yen would be made in 2026.
Source: Bits
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