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South Korea Central Bank: Issued Digital Currency May Undermine Financial Stability

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South Korea

Digital currency authorized by the central bank may have a negative impact on the South Korean financial system, causing a liquidity shortage and pushing up interest rates, a report said Thursday.

Recently, central banks around the world initiated a global discussion on the prospects for the introduction of a central bank digital currency (CBDC), referring to a form of fiat money that is issued by central banks and governments.

The CBDC is designed to have the same functions as hard currency in terms of being a medium of exchange and a store of value.

According to the report published by the Bank of Korea (BOK), the introduction of a CBDC will replace demand deposits held by local commercial banks as people think the BOK-backed CBDC is far safer.

As people withdraw money from their demand deposits, commercial banks fall into a liquidity shortage and the money supply drops. Consequently, market interest rates go up.

“The CBDC is a kind of a BOK-issued bank account. People trust it more than one in a commercial bank,” Kwon Oh-ik, one of the co-authors of the report, said. “Demand deposits are one of the biggest sources of loans by banks. When people pull out their money, banks raise rates, or lower the reserve ratio, to secure more funds.”

He said the BOK has to be more prudent and check such side effects when it decides to issue a CBDC.

Last month, the BOK said it has no plans to issue authorized digital currency in the near future, closing its long-term study on the issue that started last summer.

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Blockchain

Japan to Lead Development of SWIFT Network for Cryptocurrency

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Tokyo

Japan’s government is leading a global push to set up an international network for cryptocurrency payments, similar to the SWIFT network used by banks, in an effort to fight money laundering, a person familiar with the plan said on Thursday. Tokyo aims to have the network in place in the next few years, the person said, declining to be identified because the information has not been made public.

A team related to the inter-governmental Financial Action Task Force (FATF) will monitor its development and Japan will cooperate with other countries, the source said. It remains unclear how the cryptocurrency network would work. SWIFT is the international payments messaging system used by banks to send money around the world.

FATF in June approved the plan for establishing the new network, which was proposed by Japan’s Ministry of Finance and the Financial Services Agency (FSA) regulator, according to the person. Both the FSA and the Ministry of Finance declined to comment.

Tokyo has pushed to ensure the security of virtual currencies, hoping to leverage the fintech industry to stimulate economic growth. Japan became the first country in the world to regulate cryptocurrency exchanges at a national level, in 2017.

It remains unclear whether the network would meet resistance from users, given that the attraction of cryptocurrencies is, in part, in their unregulated nature. That lack of regulation is precisely what worries governments and central bankers.

Facebook’s recent announcement of plans to launch a digital coin has met with a chorus from regulators, central banks and governments insisting the tech giant must respect anti money-laundering rules and ensure the security of transactions and user data.

Digital currencies are also likely to be a topic at the G7 finance ministers meeting in France this week.

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Siemens Evaluates Blockchain Potential For Carsharing

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Siemens

With the invention of bitcoin came a new, secure method of value transfer, via its underlying technology blockchain. Since bitcoin’s inception ten years ago, a plethora of mainstream entities have investigated various ways to channel blockchain’s potential. Automation giant Siemens is evaluating the technology for various enterprise use cases, including improving the carsharing market.

Siemens is following the trend of mainstream giants looking to incorporate blockchain. “We are in the space where we want to come up with industrial extensions of blockchain systems, […] blockchain systems for enterprises,” Siemens Corporate Technology head of cybersecurity and blockchain Andreas Kind said to me in an interview. Kind mentioned use cases pertaining to areas such as supply chain, mobility, manufacturing, etc.

When entities are interested in making the move toward blockchain, they generally undergo periods of testing and discovery before choosing the most effective and applicable use cases, Kind explained. “Siemens is exactly in this kind of phase,” he added. The company just completed a period of exploration, Kind said, adding, “Now we’re at the point where we’re really zoomed into a set of use cases that are related to Siemens’ business.” Siemens is looking toward permissioned blockchain usage in particular, Kind noted.

Blockchain In The Mobility Arena

The cybersecurity and blockchain head mentioned the area of mobility as one of Siemens’ particular blockchain application focuses. Siemens has a separate branch devoted to the mobility sector. Siemens Mobility, a daughter company of the German-based Siemens AG, works to provide “transport solutions,” relating to the movement of “people and goods” to various locations globally, according to its website.

Carsharing As An Option

Rather than dealing with some of the responsibilities associated with owning a car, such as parking, car payments and insurance, folks who live or work in larger urban areas may often rely on carsharing, Kind explained. Carsharing allows members of the service to use or rent a car for any period of time, even for as short as one hour, according to details on the Enterprise CarShare website. Zipcar is another example of a carsharing operation.

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Altcoins

BiKi.com Compares Favorably Against Top Exchanges Binance, OKEx and Huobi

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Exchanges

The numbers are in and fast-growing exchange BiKi.com is proving it is no flash in the pan. According to official reports, BiKi.com’s revenue figures in the second quarter exceeded USD 15 million, which is a 500% increase when compared to figures from the first quarter. This works out to one-eighth of leading exchange Binance’s reported Q2 revenues.

BiKi’s June trading fees is also currently 20% of OKEx’s. Its total registered users have now reached 1.5 million, with 130,000 daily active users, numbers which are comparable to top tier exchanges like Huobi. The trading platform now provides 220 trading pairs and ranks amongst the top 20 on exchange ranking sites such as  Feixiaohao and Mytoken.

BiKi.com has continued to forge an impressive progression since it began in June 2018 and this has attracted investments of nearly USD 10 million the past year from investment institutions and individuals the likes of Du Jun, Zhu Huaiyang (Genesis Capital), FBG Capital, and ChainUp.

Cryptocurrency exchanges generally operate within an extremely competitive environment and many exchanges undertake wash trading to maintain their competitive edge. BiKi.com claims it does not practice wash trading and attributes its success to two factors – project selection and how it gains and retains market share.

Project Selection

BiKi adopts an astute set of criteria when choosing projects to list and one of them requires that all listed projects have strong communities of token holders behind them. This is contrary to cryptocurrency exchanges who charge high listing fees and then have to rack their brains to bring in users to trade. As was the case with FCoin Exchange, the “Transaction Mining” mechanism devised by its team did indeed attract a huge user base within a short period of time. However, once the dividend period was over, it was simply a matter of time before its user base had all but dissipated.

BiKi chooses its projects wisely – listed projects on BiKi have large communities and frequent traders who possess diverse assets. Additionally, BiKi already has 5 Wechat community leaders with over 1 million followers who are community token holders and over 10 Wechat community leaders with over 100,000 followers, which contribute to 80% of the exchange’s traffic volume. By leveraging on the strengths of its projects and BiKi’s own strong Wechat communities, BiKi has managed to carve out a fast track to gaining liquidity and trading volume.

BiKi’s strategy of maintaining long term relationships with venture capitalists and investors ensures that BiKi has opportunities to either list top tier projects on a moment’s notice, or be the first exchange to list a certain project. As a result, BiKi’s users have access to a wide variety of high quality tokens to trade –  clearly a factor why BiKi has emerged as the industry dark horse.

Conversely, projects who list on BiKi see the exchange as a stepping stone to gain a new level of recognition in the industry. Listing on BiKi has become somewhat of a yardstick measure of project quality, aided in no small way by BiKi’s 130,000 daily active users who organically generate demand for their tokens.

Gaining and Retaining Market Share

The sustainability of an exchange is actually not dependent on its current profitability, but on its ability to retain its users and effectively recruit new ones. BiKi was the first exchange to acquire users through its ‘community fission’ model, which is a way of scaling communities using recommendations from present users to attract more users.

Blockchain projects cannot succeed without strong communities, and the network dynamics BiKi uses to acquire users are one of its core competitive advantages. Presently, BiKi has more than 200 official community groups, more than 100,000 community members, and is still growing at a rate of 300 new members per day.

Using its “Community Partners Programme” to attract new users daily, BiKi currently has over 1000 Community Partners and is increasing at a rate of 30 per day. BiKi’s targeted 10,000 Community Partners within 2019 is estimated to bring with them 500,000 new users to the exchange.

Similar to Chinese e-commerce platforms Yunji and Pinduoduo, BiKi’s Partner Program rewards Community Partners who introduce more active users to the platform. The ‘community fission’ model shifts the responsibility of customer acquisition to present customers themselves and its inherent network dynamics builds a base of new users that continues to ‘grow’ other users.

What is important to note, though, is that despite the program restricting the network to only two tiers of membership, the efficacy of this model speaks for itself – BiKi has managed to amass 130,000 daily active users and USD 15 million in Q2.

During a bear market, BiKi.com acquired 1.5 million registered users on the exchange, setting an industry precedent in user acquisition. BiKi’s strong base of relationships and users provides a clear value proposition that projects can tap into to reach their milestones. The exchange continues to welcome projects to join the growing community of choice projects currently listed on BiKi.com.

About BiKi.com

Headquartered in Singapore, BiKi.com is a global cryptocurrency exchange that provides a digital assets platform for trading more than 100 cryptocurrencies and 220 trading pairs. Since beginning operations in June 2018, BiKi.com is considered one of the fastest-growing cryptocurrency exchanges in the world with an accumulated 1.5 million registered users and 130,000 daily active users, ranking within the top 20 exchanges globally.

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Props Launches the First SEC-Approved Crypto Token for Consumers

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Crypto Token

Props, a crypto token that enables apps to reward users and content creators with a financial stake in the network they engage with, is now available to millions of users, as the offering of Props has been qualified under Reg A+ by the U.S. Securities and Exchange Commission.1 Props is the first consumer facing crypto token qualified by the SEC. Live video app YouNow announcing today at VidCon—the world’s largest video creator conference—that starting today, its content creators and other users may begin earning Props as a reward for common in-app activities that drive community engagement. In addition, 47 million registered YouNow users are now eligible to receive Props Tokens, in recognition of their lasting contributions to the network.

The Props team is building open source infrastructure for a network of apps capable of transparently and fairly rewarding those who help network growth.3 The Props platform abstracts the blockchain infrastructure for apps, enabling them to easily plug Props Tokens into any app4 and create their own token-based “loyalty program.” As more apps join the network, users will be able to use Props tokens to unlock additional benefits across apps.5 Users hold the Props they earn for those benefits, and enjoy the upside potential of owning a financial stake in the network.

“Online video content made by independent creators has become massively popular, but still lacks diverse ways for creators to turn their content to a meaningful source of ongoing income,” said top YouTuber and Props investor Casey Neistat. “I’ve been working with the Props team as we share a similar vision, to help creators find ways to earn more value off of their passion for making videos.”

On YouNow—the first app on the Props Network—users can earn Props Tokens by creating content, supporting their favorite content creators, and actively engaging with the app, just like they always have. Based on their Props holdings, users receive unique benefits on the app, such as a daily stipend of YouNow’s in-app currency, increased in-app status, exclusive virtual items and coming soon, discounts and other features.6

Following the SEC’s official approval of Props, another company announced today that its apps will join as a partner in the Props Network: SplitmediaLabs, makers of XSplit, a high-end software for game streamers with more than 13 million users. Henrik Levring, CEO of SplitmediaLabs said “By integrating Props into our apps, we become even more aligned with our loyal users. Our users can already start earning Props when they stream to YouNow from XSplit.”

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Binance Launches Margin Trading Service for Evolving Cryptocurrency Traders

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Binance Labs

The global cryptocurrency exchange and blockchain ecosystem comprised of several arms to serve the greater mission of blockchain advancement, Binance, today announced the launch of its Margin Trading platform. As part of Binance’s effort to help push the industry forward and freedom of money, the company is expanding its trading possibilities, similarly to existing leveraged trading features on traditional markets.

“This is another step in providing an inclusive cryptocurrency trading platform catering to the needs of both advanced institutional traders and retail traders under the same roof,” said CEO of Binance, CZ (Changpeng Zhao). “We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”

Margin trading confers to a higher profit potential than traditional trading for leveraged positions, but also comes at a greater risk, which relates to the current volatility cryptocurrency market. Margin trading in cryptocurrency trading can be used to open both long and short positions, where a long position reflects an assumption that the price of the asset will go up, while a short position reflects the opposite. Binance hopes to continue informing and raising more awareness on conscious trading for its communities on margin accounts to help them realize better profitability, lower risks, and more portfolio diversification.

“Though the current cryptocurrency market and legacy platforms for margin trading poses greater risks and benefits at the same time, we are confident that its development coupled with more knowledge on proper risk management will help realize greater benefits in the long run,” said Yi He, co-founder of Binance. “With margin trading being one of the most requested services from our community, this is a testament to the large market demand from retail and institutional traders alike and its promising possibilities in the future.”

Binance 2.0: One Platform, Two Functions

The Binance Margin Trading platform is hosted under a newly optimized interface for accessing both its exchange platform and the Margin function to better serve the fast-evolving cryptocurrency traders seamlessly within one user account and familiar interface. The 2.0 platform also features an advanced trading engine for better order matching and press indexes for margin level calculations to enable lower liquidations.

The new Binance 2.0 platform also allows its users to move funds easily from the Margin Wallet to their primary Binance Wallet without any transaction fees. Binance Margin provides the option to choose collaterals from a diverse spread of cryptocurrencies, also enabling users to pay for margin trading fees with Binance Coin (BNB).

Learn how Margin Trading on Binance works from Binance Academy’s guide: https://www.binance.vision/tutorials/binance-margin-trading-guide

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tZERO Partners with Atari Movie to Tokenize First Major Motion Picture

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Motion Picture

tZERO announced today that it has entered a partnership with the producers of the upcoming movie, “Atari: Fistful of Quarters,” to tokenize the first major theatrical motion picture. This will be the first time the film industry leverages the power of blockchain technology, marking yet another milestone towards tZERO’s goal to revolutionizing capital markets. tZERO will develop the Bushnell token, sold by the film production and financing company, Vision Tree.

The new biopic is centered on a pioneering figure in the video game industry, Nolan Bushnell, who went from repairing broken pinball machines to launching the videogame manufacturer Atari in the 1970s. The film’s unique approach to funding is reflective of Bushnell’s groundbreaking and innovative career. The movie is being produced by Leonardo DiCaprio’s production company, Appian Way, as well as Benjamin Gerry and J.D. Seraphine of Vision Tree.

tZERO CEO Saum Noursalehi said, “Our goal is to apply blockchain technology to capital markets and every industry that can benefit from the platform we have built. The Atari movie is the perfect project to lead the way for the tokenization of the movie business.”

Patrick M. Byrne, Director & Chief Executive Officer of tZERO’s parent company, Overstock.com, (NASDAQ:OSTK) added, “We have been looking for the team to crack the code for Hollywood and bring much needed transparency and accountability to an industry that has been historically resistant to change. This is an extremely impressive team and we are thrilled to bring the tZERO tech stack to the movie industry.”

Vision Tree announced in March 2018 that it planned to raise as much as $40 million with the sale of the Bushnell token. Bushnell token owners, in addition to receiving shares of movie earnings, also play an interactive role in the film’s development. Token owners have received additional benefits such as being able to vote on the movie’s trailer and even have a say in choosing the movie cast.

J.D. Seraphine, founder of Vision Tree said, “Once we had the opportunity to connect with Patrick, Saum, and the rest of the tZERO family it became immediately clear that this is the best team to roll out the token for the Atari movie.”

Benjamin Gerry, founder of Vision Tree, added, “It has been a long process to find the right partner to tokenize the Atari movie and to blaze a new trail for other media projects to follow. After looking closely at every major company in the space, we are thrilled to collaborate with tZERO on this exciting endeavor.”

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Facebook’s Libra forcing China to Step up Plans for its Own Cryptocurrency, Says Central Bank Official

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Facebook

Facebook’s plans to create its own cryptocurrency have forced China’s central bank into stepping up research into creating its own digital currency as Libra could potentially pose a challenge to Chinese cross-border payments, monetary policy and even financial sovereignty, a People’s Bank of China official said on Monday.

“If [Libra] is widely used for payments, cross-border payments in particular, would it be able to function like money and accordingly have a large influence on monetary policy, financial stability and the international monetary system?” asked Wang Xin, director of the People’s Bank of China (PBOC)’s research bureau during an academic conference hosted by Peking University’s Institute of Digital Finance.

The PBOC are paying “high attention,” according to Wang, after Facebook released a white paper in June outlining plans to create its own long-awaited cryptocurrency and a related blockchain-based financial infrastructure project. The PBOC was the first major central bank to study digital currencies in 2014, a step to counter the challenge from cryptocurrencies like bitcoin, with a research institution set up in 2017 to further facilitate the research.

China maintains a blanket ban on new listings or trading of any digital currency, including bitcoin, as Beijing regards digital tokens as a source of financial risk. At the same time, China’s central bank has been longing for a “sovereign” digital currency that would fall under its control, although it has so far made little progress. Concerns have risen, in some quarters, that Libra will fuel a new round of international currency competition and a challenge to financial sovereignty. According to Facebook’s white paper, Libra will be linked to a basket of major currencies and governed by a Switzerland-based non-profit consortium, the Libra Association, which includes more than two dozen companies, including Visa, Mastercard, PayPal, Stripe, eBay and Uber.

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BiKi.com Featured in Forbes Top 10 Blockchain Companies in 2019

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Blockchain Companies Biki

8th July, Singapore, Singapore – BiKi.com, while still a relatively new cryptocurrency exchange, managed to emerge tops on the Forbes Top 10 listing of blockchain companies to watch in 2019. The highly sought-after listing included 10 blockchain companies from all over the world that have made significant contributions to blockchain becoming more accessible, prominent and mainstream.

Founded in June 2018, BiKi.com began operations in Aug 2018, headquartered in Singapore. Co-founder of Huobi and CEO/founder of established media group Jinse Finance, Du Jun invested USD 5 million in personal funds and served as joint CEO of the infant exchange. The global digital currency trading platform has a strong technical and operations team, committed to creating the safest, most stable and efficient platform for users around the world. Presently, it supports languages ​​such as Chinese, English and Vietnamese, with more in the pipeline, and has served more than 1 million global users in nearly 100 countries and regions.

In under a year, BiKi.com has become one of the fastest growing exchanges in the world. With 1.5 million registered users, 100,000 daily active users and a daily trading volume of 70 million USDT, it has been steadily climbing up the rungs of the global crypto exchange ladder on popular sites like Coingecko, Feixiaohao, Mytoken, Aicoin and will soon join Coinmarketcap. It currently has more than 200 active WeChat communities out of a total of nearly 500 and a buoyant telegraph group. We look at the main factors contributing to BiKi’s rapid growth.

Incremental Marketing

Using incremental marketing, BiKi.com has managed to amass many registered users in numerous third- to fifth- tier Chinese cities while simultaneously ushering in new market users from the Chinese and global internet. The exchange’s ‘transformative way of scaling communities’ has successfully accelerated growth in its user acquisition division. BiKi also helps its projects to increase its market users unlike other exchanges such as Huobi, Binance or OKEx.

Community Partner Program

BiKi’s attractive Community Partner Program has also been instrumental in boosting the influx of traffic to the platform. By simply holding at least 30,000 worth of BiKi locked-in for 1 year, users are eligible to become Community Partners who earn 10% interest like a time deposit and get 60% cashback on trading fees as well as bonus rewards and token airdrops.

Professional Services

BiKi has professional market-making strategies and a full range of service tools for users through a bull or bear market while providing media exposure support and assistance for partner projects.

Cost-Effective Platform

Compared to the current top exchanges that charge high listing fees, BiKi.com offers very affordable fees and value-added service fees, effectively buffering the effects of a bear market.

BiKi Platform Coin

BiKi’s platform coin creates a system of deflationary economics based on its principle of “mining, repurchasing and burning”. The initial token issuance of 1 billion will continuously be repurchased and burned till it decreases to 100 million. So far 100% of its platform fees have been used to repurchase and burn the platform currency, with 274 million already burned in the past 6 months. Next, the platform also has plans to launch the BiKi transaction pair, whereby projects will then raise funds in BiKi instead of ETH, again bringing value to the BiKi coin. With its business locks, institutional node locks and user financial locks, BiKi coin circulation is drastically reduced, thereby increasing the value of the BiKi coin.

From its starting price of $0.01384188 in mid April this year to its current price of 0.134539, BiKicoin has charted an impressive upward trajectory, representing an almost 10-fold increase In less than 3 months, a clear indication of investor demand and recognition of the coin’s value.

biki

Committed to bringing digital assets to the mainstream market, it is not surprising that Forbes has ranked BiKi.com amongst its Top 10 Blockchain Companies to Watch in 2019. With BiKi’s continued focus on incremental marketing and global market expansion, together with improvements in services, community programs and also on its platform, BiKi appears poised to continue its ascent to the top flight of crypto exchanges.

About BiKi.com

Headquartered in Singapore, BiKi.com is a global cryptocurrency exchange that provides a digital assets platform for trading more than 100 cryptocurrencies and 127 trading pairs. Since beginning operations in Aug 2018, BiKi.com is considered one of the fastest-growing cryptocurrency exchanges in the world with an accumulated 1.5 million registered users and 100,000 daily active users, ranking within the top 30 exchanges globally.

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Altonomy Launches New Cloud Mining Product for Institutions

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Cloud Mining

Altonomy, the leading trading desk, market maker and asset manager for cryptocurrency assets and derivatives, announced today it has launched AltMiner, a new cloud-based mining product tailored to international institutions and large investors seeking long-term exposure to bitcoin.

“We’e delighted to launch AltMiner and provide larger investors with high-quality miner exposure at a lower relative cost than retail-focused alternatives,” said Ricky Li, co-founder of Altonomy. “As the crypto market moves from strength to strength, this product allows institutions to recoup bitcoin generated by the most advanced miner technology available, without requiring coverage for mining overheads such as setup fees, hosting costs and utility expenses.”

AltMiner products have a minimum buy-in of $500,000 and each product is sold as a two-year contractual commitment. Payouts are issued to product owners daily in bitcoin and are proportional to the owner’s hashrate, as well as the hashrate of the entire Bitcoin Network.

The first batch of AltMiner products, which had a hashrate capacity for $3 million, is already oversubscribed by more than 300%, with the first payout window commencing on June 26, 2019. Altonomy owns the underlying equipment and is offering second batch of AltMiner, with an estimated capacity for more than $10 million.

“Being backed by sub-10 nanometer bitcoin mining processors, AltMiner is harnessing technology that is extremely hard to procure,” said Charles Pyo, CEO of Chain Partners. “We are thrilled that such a product is now available, giving us exposure to efficient miners and promising returns. As a long-term partner of Altonomy in the Korean market, we are also extremely excited to make this product accessible for Korean investors.”

“In AltMiner, Altonomy is providing a compelling product that gives us the long-term exposure to bitcoin we seek,” said Jae Hoon Choi, founder and CEO of Pledgecamp. “The regular payouts that AltMiner generates provide a steady cash flow to help fund our daily operations. We are very glad to work with a notable institution like Altonomy on this.”

“As mining exposure takes root among retail investors, AltMiner presents a pioneering product for institutions,” said Ryan Fang, Founder of ANKR. “Depending on market conditions, one can make the case that AltMiner is a superior vehicle for long-term exposure to bitcoin, then this is the easiest and probably the cheapest solution.”

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Digital Currency Operators Must Comply With Rules: Bank of Japan’s Amamiya

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Digital Currency

Digital platform operators such as Facebook, planning to launch a new global cryptocurrency called Libra, must comply with regulations on money laundering and risk management, Bank of Japan Deputy Governor Masayoshi Amamiya said on Friday. They must act responsibly and comply with various regulations to take root as providers of safe and secure payment settlements, Amamiya told a Reuters Newsmaker event.

While details of Facebook Inc’s (FB.O) cryptocurrency plan remain sketchy, central banks must be vigilant to the impact such moves could have on their country’s banking and settlement systems, he added.

“As for Libra, we must bear in mind that the potential global user-base could be enormous,” Amamiya said.

Facebook last month announced its plan to launch Libra within the first half of 2020, part of an effort to expand beyond social media to digital payments. The project has prompted some European central bankers to claim oversight to ensure it would not jeopardize the financial system or be used to lauder money. Global central banks have so far largely refrained from regulating digital currencies, having failed last year to reach an agreement on how to do so and concluding they were too small to pose a risk to the financial system.

Cryptocurrencies remain one of the least-regulated areas of finance, and the response of domestic and international financial regulators and monetary authorities to the Libra project will have a crucial impact on its prospects.

Rapid changes in financial innovation have also led some central banks to consider issuing digital currencies, or at least study the feasibility of doing so in the future.

Amamiya said the BOJ had no plans to issue digital currencies for now partly due to uncertainties over how it affects conventional commercial banking.

“If central bank digital currencies replace private deposits, that could erode commercial banks’ credit channels and have a negative impact on the economy,” Amamiya said.

He also brushed aside the idea that central banks can boost the effectiveness of negative interest rate policies by issuing digital currencies. If central banks issue digital currencies and apply negative rates on them, households and companies will hold cash instead to avoid being charged for holding digital currencies, he said.

“To overcome the nominal zero lower bound, central banks would need to eliminate cash,” Amamiya said. “Eliminating cash would make settlement infrastructure inconvenient for the public, so no central bank would do this.”

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