Central Bank of Japan says issued digital currencies are not effective economic tools

Bank of Japan: Central Bank-Issued Digital Currencies Are Not an Effective Economic Tool

The Bank of Japan’s (BOJ) deputy governor Masayoshi Amamiya has recently reiterated his negative stance towards central bank-issued digital currencies (CBDC), the New York Times reports Oct. 20.

Speaking on Saturday at a meeting in Nagoya, central Japan, Amamiya expressed doubts about the use of CBDCs, claiming that such digital currencies are unlikely to improve the existing monetary systems. Amamiya also stated that the BOJ does not plan to issue digital currencies.

The article reports that some financial experts consider a CBDC as a tool for central banks to control the economy once interest rates fall to zero. According to this theory, a CBDC would enable central banks to stimulate the economy by charging more interest on deposits from individuals and firms, which would in turn induce them to spend more money.

Amamiya has questioned that theory, claiming that charging interest on central banks-issued currencies...


DZ Bank Germany Ripple blockchain integration underway

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The online world of business is undeniably changing. But, have we seen its full extent yet? Perhaps the answer lies with the blockchain technology. Some studies point out that with blockchain (like Ripple, and of course, other similar ones like Stellar or the ones that might come to the party) integration by the banks, they will be able to realize significant savings.

The banks will enjoy cost reductions not only in their payment processing as well as reconciliation alongside compliance and treasury operations.

DZ Bank AG Considering Ripple Interledger Protocol

DZ Bank is one of the most talked after bank in Germany. It is the second largest bank in the country by asset size as well as the central institution. The bank functions as both a central institution as well as corporate and investment bank.

Concerning potential Ripple Interledger protocol integration, the bank has listed a couple of slides in their recent report “blockchain(s) and potential impacts on reconciliation.” It is not rocket science to what that may mean just because the protocol is all about cross-border transactions.

"…..we are very confident that Germany will move as well ahead with #ripple"

see full clip from @BankXRP https://t.co/SWJ5NnouwT#xrp #ripplenet #ripplenews #xrpcommmunity #xRapid #xrpthestandard #xrparmy pic.twitter.com/sWJQd4MNvs

— 🅂🅃🅄🄰🅁🅃🅇🅁🄿💧⚡🇬🇧 (@stuart_xrp) October 12, 2018

If at all it means DZ is considering to welcome Ripple Interledger protocol to their platform, it won’t do anything different but probably a smile to the bank users and...


Norway's Central Bank Mulls Digital Currency as Cash Use Declines

Norway's central bank is preparing for a future in which it might issue a digital currency amid a slump in cash usage in the country.

Looking into the possibility, a working group at Norges Bank has released a report titled "Central Bank Digital Currencies," which explains that, as citizens turn away from physical forms of money, the bank must consider "a number of new attributes that are important for ensuring an efficient and robust payment system."

Already, the country's DNB bank has stopped handling cash, with Trond Bentestuen, group executive vice president of wealth management and insurance at the bank, telling local media as far back as 2016, that only 6 percent of Norwegians use cash on a daily basis.

Further, Jon Nicolaisen, deputy governor of Norges Bank, stated in a speech last April that the role of cash "continues to diminish" as consumers move towards electronic payments, adding that "For many consumers, electronic central bank money could provide an...