Official: Bank of Japan Will Consider Virtual Currency

Official: Bank of Japan Will Consider Virtual Currency

Organized by the Central Bank of Japan, the 3rd Fintech Forum occasion had Blockchain Technology which together with Bitcoin, is the innovative force

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Organized by the Central Bank of Japan, the 3rd Fintech Forum occasion had Blockchain Technology which together with Bitcoin, is the innovative force behind digital currencies, as the main agenda.

Present were Central Bank’s payments department officials who admitted that central banks worldwide were conducting research on the technology.

In reference to a report by Nikkei, Blockchain technology was the main topic of the day in which private banks as well as financial institutions were reported having presented mock-ups showing potential Blockchain applications during the occasion.

It was confirmed by the one Governor Haruhiko Koruda of the Bank of Japan in December that bank payments departments were testing Blockchain technology stating it was becoming almost certain that central banks had thorough comprehension of the innovation.

After testing,another official by the name dYuji Kawada from payments department made it clear than Blockchain technology had ability to produce advantageous results during the Fintech Forum.

Nevertheless, the official added that testing distributed ledger technology with the Bank of Japan’s Financial Network System (BOJ-NET), known for powering electronic transfers and securities in Japan failed to measure up to the system at hand interms of processing capability.

In partnership with the European Central Bank, studies on the potential use-case of Blockchain technology were made by the Bank of Japan in a joint research from the year 2016.The release of the project discoveries are anticipated this year.

A digital Yen?

The Nikkei report in this week’s event reverts to queries as posed by the private financial sector in the case of a Bank of Japan-issued digital currency, whereby the decreed cash in banknotes and coins would instead be replaced with digital recordings. The current monetary policy used by the Central Bank would be altered immensely if digital Yen were to be brought forth, just the same way as relationships between the Central Bank and private banks.

Hirom Yamaoka, the director general of the payment and settlement systems departments did not say much when the unavoidable query came up concerning a digital by the Central Bank.
Yet still, he stated that they would seriously consider what could be done by a central bank.

It was revealed in November 2016 by Central Bank’s Deputy Governor Hiroshi Nakasi, that the bank had no specific set period of time or plans to replace cash with digital currencies. Nonetheless, it was stated by the senior officer that talks were being held between the bank and academia to provide answers to questions in regards to a central bank-issued digital currency.

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