Japan must pursue payment innovation as society becomes cash-less, BOJ official says
Kazushige Kamiyama, Bank of Japan's head of payment and settlement systems department overseeing its research on digital currencies, speaks at an interview with Reuters in Tokyo, Japan, October 15, 2020. REUTERS/Takahiko Wada/File Photo
TOKYO (Reuters) -Japan currently has no plan to issue a central bank digital currency (CBDC) but must continue innovating its payment and settlement system in an increasingly cash-less society, a senior central bank official said on Wednesday.
Although banknote issuance remains high in Japan, usage of notes could fall significantly in the future amid rapid digitalisation, said Bank of Japan (BOJ) Executive Director Kazushige Kamiyama.
"As such, Japan must consider what steps it can take now to ensure its retail settlement system is convenient, efficient, accessible universally, while being safe and resilient," he said in a speech.
While the BOJ currently has no plan to issue a CBDC, it must keep up efforts to enhance the safety and efficiency of Japan's payment and settlement system, Kamiyama said in a meeting with private firms on a pilot programme for developing a digital yen.
The BOJ has said no decision has been made yet on whether Japan will actually issue a CBDC, which must be made by the government and parliament.
But the central bank has been conducting experiments and exchanging views with private firms on a digital yen, to be ready in case Japan decides to issue a CBDC.
CBDCs are back in the spotlight after U.S. President Donald Trump banned work on a digital dollar in one of his first moves after regaining power in January.
(Reporting by Leika Kihara; Editing by Kim Coghill)
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