Japan is taking a well-thought-out but vigilant approach to global interest in issuing the central bank’s digital currency. In a recent speech released on Tuesday, Bank of Japan Governor Kuroda Haruhiko indicated that the institution has not changed its mind and does not currently have a specific plan to issue a central bank digital currency.

However, this non-compliance in no way implies passivity for research and development of CBD. In October 2020, the Bank of Japan promised to launch the first of several test rounds to present its CBDC concept. Haruhiko confirmed that they will begin this spring.

The governor emphasized that according to the BIS report, 86% of central banks worldwide examine the advantages and disadvantages of the central bank’s digital currencies. Of these, 60% are already in the experimental or proof-of-concept stage. Haruhiko notes:

“Central banks share the view that it is inappropriate to assess the central bank’s digital currencies only when there is a need for central banks to issue digital currencies in the future.”
“From the point of view of ensuring stability and efficiency in payment and settlement systems in general, we consider it important to carefully prepare to respond appropriately to changing circumstances,” Haruhiko said. Given the “significant changes” that are taking place in an increasingly digital society, he indicated that the bank uses the opportunity to carefully evaluate various approaches to possible changes in the supply of funds from the central bank.

Haruhiko went so far as to group these new techniques under the heading “central bank as a service.” In his broader description of these trends, he argued that “as a service” is a new trend in the broader economy, inherited from previous developments in the corporate and software industries. This means moving towards building business models based on customer-driven service delivery instead of taking a traditional product-driven sales approach.

Everything as a service, Haruhiko noted, now includes mobility as a service (buying a mobile service instead of a car) and infrastructure as a service, making it redundant for companies to own certain devices. In connection with financing, he summarized:

There has also been a recent trend towards the separation of financial services, previously offered by financial institutions, as closely related ones, which enables the integration of components in financial services with non-financial business services. This is called banking as a service, […] also known as guaranteed finances.
The Bank of Japan has been closely monitoring innovation in public and private finance, and has been collaborating with the Bank for International Settlements and five other major global banks on CBDC research since January 2020, focusing on issues such as offline accessibility support. digital currency. …

Source: CoinTelegraph

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