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Kuroda says BOJ has no immediate plan to issue digital currency

TOKYO: Japan has no immediate plan to issue central bank digital currency (CBDC), Bank of Japan Governor Haruhiko Kuroda said on Tuesday as financial leaders from the Group of Seven (G7) advanced economies shared a common view on digital payments.

“The BOJ has no immediate plan to issue CBDC,” Kuroda told reporters after attending a G7 teleconference together with Finance Minister Taro Aso.

“However, the BOJ has shifted a gear by one step in proceeding with consideration so as to adequately respond to changes in environment in the future.”

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The issues of digital payments and updates on the coronavirus response dominated Tuesday’s teleconference held by G7 finance ministers and central bank chiefs, Aso said.

The G7 financial leaders underscored the need to maintain transparency, rule of law and sound economic governance, or it could affect global financial systems, Kuroda added, in a tacit warning against China’s move to issue digital yuan.

Aso echoed the importance of maintaining transparency, when asked whether digital yuan would satisfy such conditions.

“There are various views… We are telling not only China but also other countries who intend to issue digital currencies that they must not do so unless conditions are met,” Aso said.

The European Central Bank is considering issuing a digital euro to complement banknotes.

The Bank of England has also launched consultations on a digital pound sterling, but the Bank of Japan and the Federal Reserve have so far taken a back seat.

  • Reuters

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