BOJ Believes No Cryptocurrency Can Dominate The World, Including Digital Yuan

 Currently all central banks are vying to produce their respective digital currencies in the hope of becoming the major digital assets used worldwide.

Contrary to the opinion of the head of digital bank development efforts of the central bank (CBDC) of the Bank of Japan (BOJ), Kazushige Kamiyama who rejected the idea of ​​digital currency potentially dominating the economy.

According to Kamiyama, although the central bank that succeeds in producing CBDCs in the near future will receive an advantage, it is not impossible at the same time that the advantage becomes a disadvantage.

Instead, it is more appropriate for all central banks to focus on efforts to improve the quality of the settlement system rather than racing to become the ‘champion’ of digital assets.

Earlier, Japan's deputy finance minister for international affairs Kenji Okamura expressed concern over China's success in processing $ 162 million in CBDC transactions between April and August 2020 through a first test, considering the news a threat.

For now, the BOJ is monitoring the efforts of the establishment of the CBDC from other major countries to be an example of the establishment of digital assets in the future which is not only based on their own opinions.

If the CBDC is successfully launched, the BOJ will focus on total asset withdrawals and the ownership of authorized entities. It aims to prevent any change of capital from the bank.