Bank of Japan deputy governor Masayoshi Amamiya said today that it was important for the central bank to be prepared to issue its own digital currency to respond to a possible future increase in public demand, Reuters reported on Thursday.
While speaking at a seminar in Tokyo, Amamiya noted that the BOJ had no current plans for a CBDC, but that the bank should continue to explore its viability. He cited the rapid pace of technology innovation, particularly in settlements. According to Amamiya:
“The speed of technical innovation is very fast. Depending on how things unfold in the world of settlement systems, public demand for CBDCs could soar in Japan.
We must be prepared to respond if that happens.”
Amamiya also suggested that he didn’t envision any serious changes in monetary policy related to bank lending, interest rates, or asset prices from a central bank issued digital currency, but noted that “the transmission mechanism” might become more “complicated and difficult” if the current settlement systems are changed.