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BOJ Says Won’t Issue Digital Currency to Achieve Negative Rates

The Bank of Japan headquarters in Tokyo.

The Bank of Japan headquarters in Tokyo.

Photographer: Kiyoshi Ota/Bloomberg

The Bank of Japan won’t issue any digital currency with the aim of achieving negative interest rates, a senior BOJ official said on Wednesday, the clearest denial yet of an idea often floated by analysts and academics.

“The bank will not introduce CBDC on this ground,” BOJ Executive Director Shinichi Uchida, in charge of the central bank’s experiments for digital money, said in a speech to a committee on Wednesday. “It is unlikely that such a motivation would be supported by the general public. Furthermore, such a remuneration functionality would be operationally unrealistic while cash still exists.”