The Bank of Japan does not plan to issue its own digital currency at the moment, concerned that this could negatively affect financial stability. This is reported by CoinDesk.
On Friday, in the closing remarks at the IMF conference and the Japanese Financial Services Agency, the deputy governor of the Bank of Japan Masayoshi Amamiya said that the issue of digital currency for direct use by consumers - with or without blockchain - could jeopardize the existing two-tier financial system.
Currently, central banks provide access to a limited number of institutions like private banks (the first level) that already work directly with consumers (second level). Amamia calls this process proven "the wisdom of human beings in history to achieve both efficiency and stability in the currency system."
Thus, according to Amamia, the availability of a digital currency backed by a central bank will change the system, but it will not necessarily preserve its financial stability.
In this regard, the issuance of central bank digital currencies for general use could be analogous to allowing households and firms to directly have accounts in the central bank. This may have a large impact on the aforementioned two-tiered currency system and private banks' financial intermediation.
Deputy governor, Bank of Japan
Nevertheless, according to Amamiya, it is possible that the central bank of Japan will issue its own digital currency in the future. His department has already begun to explore the technology of blockchain with a focus on other areas.