Will Digital Payments Replace Cash In The U.S?
Bank of Japan Deputy Governor Masayoshi Amamiya said that no central bank would abandon cash to improve the efficiency of the financial system through national digital currencies..
According to him, in order to establish negative interest rates by issuing CBDCs, central banks will need to liquidate cash, which will be unprofitable and inconvenient for citizens..
He believes that the main problem is that in the context of such a policy, individuals and legal entities will actually be charged a fee for saving digital coins. Therefore, they will abandon them, and instead keep cash..
Thus, Masayoshi Amamiya hinted that central banks will not be able to improve the effectiveness of financial policies by switching to digital currencies. Earlier, he also said that the Bank of Japan does not plan to issue CBDCs to the public, as this would upset the stability of the existing two-tier system..
text: Ivan Malichenko, photo: assets.bwbx