Central Bank Of Japan Examines Digital Currencies According To New Report

The central bank of Japan is now examining how the central bank digital currencies (CBDCs) can play out in the current monetary system of the country according to an official report published by the bank that reached our blockchain news today, February 19.

According to the document, the bank explains the many possible ways how the central bank digital currencies can be implemented and used and what the consequences might be of using the CBDCs in different areas and different approaches. The report divides two possible categories of CBDCs where the first being the digital currencies accessible to the general public in a form of banknotes, and the second category will be those that are limited for large-value settlements.

The categorization comes as an attribution to the report that was initially released by the Bank for International Settlements back in March last year which divided CBDCs for general purpose and wholesale CBDCs.

Also, after giving a lengthy explanation of how CBDCs will not bring such a huge difference to the monetary system, the report is also focused on the first kind throughout the entire document. The report also notes that the distributed ledger technology along with the blockchain technology could be used as a token-based CBDC.

Last year in October, the deputy governor of the central bank of Japan, Masayoshi Amamiya expresses his negative stance towards central bank issued digital currencies. Also, the central bank of South Korea issued a warning over the CBDCs just one week later after they claimed to never issue one itself.