- The head of Monex Group supports the idea of CBDC.
- The Japanese economy will benefit from issuing digital yen.
Central banks can boost cryptocurrency usage and accessibility by issuing their digital coins known as CBDC, according to Oki Matsumoto, the head of Japan’s leading financial company, Monex Group.
Central bank digital currencies will help boost cryptocurrency trading by providing a more convenient platform for converting cryptocurrencies into legal tenders, said Oki Matsumoto, chief executive of the major financial services firm in Japan.
At this stage, users may face issues converting their crypto assets into legal tenders as many small brokers and cryptocurrency trading platforms do not have a bank account. According to Matsumoto, the central bank digital currencies will solve the problem by providing convenient platforms for converting cryptocurrencies into fiat money, thus facilitating their usage in the real economy.
CBDCs will significantly enhance the interoperability of cryptocurrencies. It would make the cryptocurrency market more lively, he said in the interview with Reuters.
The Japanese economy will benefit from CBDC issuance
The head of Monex Group believes that Japan should move forward with its plans on issuing a central bank digital currency as it will help digitalize the economy and make it more efficient.
Meanwhile, the Bank of Japan is among the long list of global regulators engaged in CBDC development. Earlier this year, BOJ said that it would start experimenting with digital yen in 2021 to catch up with the private sector’s innovations.
The Japanese government included CBDC development in the list of high-priority tasks as the Chinese leadership on this matter is regarded as a potential national security threat. Also, the Japanese politicians are concerned that China will try to use the first-mover benefits to take over global dominance from the US dollar.
Global central banks are in a rush
According to the recent report published by the Bank for International Settlements, about 80% of the global central banks are engaged in CBDC-related research and development activities. Moreover, 10% of them were ready to roll out the digital currency within the foreseeable future to enable broad access to central bank money and enhance financial system resilience.
Moreover, the International Monetary Fund (IMF) believes that the eventual transition to CBDCs is inevitable. Thus, the newly appointed head of IMF recently noted that the global economy required decisive actions to fight the crisis and create a more sustainable world. At the same time, the digital currencies may become part and parcel of the new world order.
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