AMAMIYA Masayoshi（Deputy Governor of the Bank of Japan
Central）talk about his view about Central Bank Digital Currency (CBDC) on Tokyo Future of Payments Forum.
He explained there are three things that will not change or should not be changed regarding the payment and settlement systems, and money.
First, the basic architecture of money will remain unchanged. There are two forms of money: token-based or account-based.
Second, the two-tiered monetary system will remain unchanged. This is something that should not be changed and should be maintained. The two-tiered system is a system where the central bank exclusively supplies central bank money consisting of cash and central bank deposits, and private banks provide deposits through credit creation based on the central bank money.
Third, the fundamental roles of the central bank will remain unchanged.Even if the use ofbank notes were to continue to decline and the Japanese economy became cashless, the centralbank would conduct monetary policy under the two-tiered monetary systemby controllingcentral bank current accounts, which is digital money, and act asthe “lender of last resort.
There are three things may changed.
First, cashless payments will steadily expand in retail payments.
Second, diversification of payment service providers is likely to continue.
Third, money and data will become more closely linked.
Then , he discuss about the CBDC about few different countries.
The first, in Sweden, decrease in the outstanding amount of cash in circulation, having reached less than two percent of GDP, is behind their motivation to explore the possibility of the issuance of CBDC.
The second is the case of emerging economies, such as Cambodia and the Bahamas. In these economies, infrastructures related to domestic currency and payments have remained immature, but smartphones have spread everywhere.
The third is the case of China. The PBoC will not only focus on the reduction of cash handling cost but also on addressing the risks of counterfeiting, as well as preventing money laundering and countering the financing of terrorism (AML/CFT)
Than, he also talk some Issues regarding CBDC. Check “Read More” for more informations.