Masayoshi Amamiya, Bank of Japan’s Deputy Governor, noted on Saturday that is was uncertain if digital currencies can improve the monetary policies of central banks. He emphasized that the Bank of Japan has no intentions to release a cryptocurrency.
Mr. Amamiya noted that there was “quite a hurdle” for cryptocurrencies to handle fiat currencies, and mentioned that they are mainly used as a means for investment instead of actual payment or settlement. But it is certain that this move is changing, as Ripple, a cryptocurrency in the global payments space, has revealed high-profile partnerships with financial institutions including PNC Bank, a major United States bank with more than 8 million customers and lately with the largest private foundation in the United States, the Bill and Melinda Gates Foundation.
This is not the first instance that an individual partnered with a central bank has weighed in on cryptocurrency and if it should launch a digital currency. Mario Draghi, the president of the European Central Bank and generally termed as one of the most important individuals in global finance, recently softened the concept, noting that the “underlying technology is still fragile.”
There are several in the cryptocurrency community who are not shocked at the fact that some central banks seem to soften cryptocurrency, as it could affect the general global payments and settlement sector, hence is perhaps a direct risk to central banks.
Of late, the head of the Central Bank of the Russian Federation, Elvira Nabiullina expressed the fact that investor interest in cryptocurrency was decreasing and that “cryptocurrency fever was disappearing.” She also recognized that initial coin offerings were an effective way to gather funds, but went on to mention the high percentage of fraud in the sector also.
Even with these statements from recognized personalities at central banks, there are some other organizations that have different views. The World Trade Organization, which according to many is the number one organization with regards to controlling international report, recently announced a report that applauded digital assets and their potential.
The report which is known as “The Future of World Trade: How Digital Technologies Are Transforming Global Commerce”, was confident in its reports, stating clearly that “blockchain has the potential to profoundly transform the way we trade, who trades and what is traded.” The report pointed out Ripple with regards to its potential in connection to global payments sector.