EUR/USD 1.15309
0.026%
Gold 4050.88
-1.284%
Oil 83.139
0.594%
USD/JPY 159.176
-0.208%
GBP/USD 1.34761
0.081%
GBP/JPY 214.510
-0.118%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Jihu Auto: 23,517 vehicles were delivered in July, up 150.45% year-on-year, with cumulative deliveries exceeding 100,000 vehicles from January to July.On August 1st, Japans Ministry of Finance posted on the social media platform X that the Japanese monetary authorities have multiple tools at their disposal to meet market liquidity needs. These tools include, as appropriate, the use of the Federal Reserves Standing Repurchase Facility (FIMA), which accepts U.S. Treasury securities as collateral to provide temporary dollar liquidity. The Ministry of Finance stated, "We are prepared to utilize available tools as needed to support the orderly functioning of the market."August 1st - According to reports from the United States on July 31st, July this year is expected to be the hottest month on record in the continental United States. Meanwhile, a new "heat dome" is forming in the western United States, and the high temperatures are expected to continue. It is reported that as of July 29th, the average temperature in the United States this July was about 1.4 degrees Celsius higher than the average for the same period from 1991 to 2020. Although the final average temperature data for July will not be released until early August, media predictions suggest that this figure could break the record set in July 2012, making July this year the hottest month on record in the continental United States.Japans Ministry of Finance: Monetary authorities have a wide range of tools to address market liquidity needs.On August 1st, the South Korean National Assembly passed an amendment to the Criminal Procedure Act on July 31st, abolishing the prosecutors authority to conduct direct and supplementary investigations. This is another legislative measure in South Koreas push for reform of the prosecutorial system. The National Assembly passed the amendment with 175 votes in favor, 2 against, and 1 abstention. According to the amendment, the prosecutors office will no longer have the authority to conduct direct investigations, nor may it conduct supplementary investigations on its own. If a prosecutor believes a case requires further investigation, they can only request the judicial police to conduct supplementary investigations.

Exec Director of the Bank of Japan Refuses to Launch CBDC for Negative Rates

Cameron Murphy

Apr 14, 2022 10:49


微信截图_20220414102604.png


The CBDCs will not be utilized to attain negative rates, according to Bank of Japan Executive Director Shinichi Uchida.


Another BoJ officer indicated in February that CBDCs might harm the economy.


Other banks and businesses in the nation are working on their own stablecoins.


As Japan continues to build its own Central Bank Digital Currency (CBDC), the central bank that will issue it is expressing reservations.

Japan Opposes CBDC in Part, but Not Completely

According to Reuters, Bank of Japan Executive Director Shinichi Uchida indicated that if a digital currency of the Japanese Yen is meant to be used to produce negative rates, the central bank would not launch it.


Recently, Japan started testing the possibility of establishing a CBDC within the next four years, and there has been back and forth among economists in the nation.


Regardless, the central bank is still experimenting and testing new functions.


The tests are now in their second phase, and the Bank of Japan intends to investigate the possibility of imposing a transaction and HODLing restriction on the CBDC.


The bank is also considering whether or not the CBDC should be converted into an interest-bearing asset. However, according to Uchida, doing so might lead to the CBDC becoming a bank deposit alternative. "While the concept of employing such a feature as a method to create a negative interest rate is frequently debated in academics, the Bank will not establish CBDC on this premise," he said, adding to the worry over negative rates.

CBDC-Related Issues

While Uchida was against negative rates, Hiromi Yamaoka, the former head of the Bank of Japan's financial settlement department, warned that CBDCs may ruin the economy.


Hiromi agreed that payment systems should be digitized, but he opposed utilizing a CBDC to do it. "Some argue negative interest rates may operate more successfully with a digital currency, but I don't think so," he said of his reservations about negative interest rates.


Companies and institutions, on the other hand, are developing their own currency offers in the meanwhile，A Japanese trading firm, aims to issue a gold-backed cryptocurrency in the nation.


Even though it will serve as a stablecoin, it will be tethered to the value of 1 gram of gold rather than the Japanese Yen.


While the "stablecoin" is a viable investment option, it pales in comparison to what a real stablecoin or CBDC can do. As a result, the Bank of Japan estimates that the nation will have to wait until 2026 to receive its own digital currency.

Suggestion