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Ex-Official Warns BOJ Against Using Digital Yen to Juice Policy

  • China’s CBDC progress shows time is of essence, Yamaoka says
  • Says a negative rate on a CBDC could trigger stability fears

The Bank of Japan shouldn’t view the issuing of a digital currency as a monetary policy option as doing so could severely damage the economy, according to a former BOJ official who led research into digital money. 

“Some say that negative interest rates could work more effectively with a digital currency, but I don’t think so,” said Hiromi Yamaoka, the former head of the BOJ’s financial settlement department.