While some political and corporate leaders have been eager to invest in and adopt cryptocurrencies, others are entirely hostile. Turkish President Tayyip Erdogan recently declared outright war on the Bitcoin network. President Erdoğan: "We Are At War" President Erdoğan expressed his opposition to Bitcoin in a meeting with Turkish students this Saturday. The event comes after one of them asked if the country's central bank would adopt cryptocurrencies. Erdogan responded with total rejection: "We have absolutely no intention of embracing cryptocurrencies. On the…
Recently, the Bank of Japan’s deputy governor claimed that advanced economies do not need central bank digital currencies (CBDCs). He spoke at the Future of Payments Forum, organized by the Bank for International Settlement.
Amamiya said that CBDCs are a tremendous financial system for developing countries, especially the ones with immature payment infrastructures. Nevertheless, he claimed that advanced technologies cannot benefit from virtual currencies.
Why Amamiya is Against Digital Currencies
Amamiya said that it is unnecessary to implement new steps to ensure people have access to central bank money. He claimed that giant economies are operating safely and stably and does not encourage them to adopt new technologies.
The BoJ’s deputy governor also pointed out that if CBDCs operated at lower costs than private initiatives, merchants would go for the digital currencies. Nevertheless, he claims that it would suppress private business and discourage innovations.
Additionally, Amamiya said if Japan introduces a digital yen, BoJ could become the sole repository for its whole transaction information. However, this raised concerns about how the central bank would store and protect consumers’ financial data.