Senior Bank of Japan (BOJ) official announced all virtual currencies will not overthrow hard money printed by central banks any time soon, particularly in countries such as Japan with a solid, established financial business. Hiromi Yamaoka, head of the BOJ's payment and settlement systems department explains, the need for central banks to maintain public trust in their policies has increased as the evolution of financial technology or fintech gives the public an alternative to using cash.
The BOJ established a section in charge of fintech to offer guidance to banks seeking new business opportunities. The Bank of Canada is experimenting with a payments system based on the technology behind crypto currencies. Yamaoka believes that while there was no plan for the BOJ to engage in a similar experiment, the increasing presence of digital currency was among topics keenly studied by the financial institution. Fintech is an area with potential to revitalize Japan's economy," he said. That's why policymakers want to work hand in hand with the private-sector." Central banks of advanced nations, including the BOJ, have been printing money aggressively to reflate their economies with little success. While their hope is to generate inflation, critics say the move could erode the value of their currencies and damage their credibility.
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