Japan Decides To Ditch Cryptocurrencies

Representatives of the Central Bank of Japan (BoJ) said they decided to abandon plans to create their cryptocurrency. Earlier, the country thought about issuing a central bank digital currency (CBDC), which was supposed to become a virtual analog of the Japanese yen. However, the government changed its mind due to a lack of public interest.

The Bank of Japan announced that another group of researchers would be created, which will carefully study the prospects for the possible release of the national cryptocurrency. However, the government noted that, at the moment, this is not a priority for the development of the internal and external economy of the state.

Members of the financial institution stressed that issuing a central bank digital currency is currently not technically feasible. Analysts recalled that the Central Bank of Japan began to show interest in creating a CBDC in 2021 and conducted several stages of testing the idea.

The results showed that most Japanese citizens do not need a central bank digital currency, as they already have access to many cheap and efficient internet banking services and digital payment tools. Platforms operating in the country provide customers with many opportunities, and cryptocurrencies cannot compete with this range of advantages.

Experts assured that despite the growth in the number of digital payment methods, the use of cash continues to dominate in Japan. This is especially noticeable among older people aged 65 years and older, who make up about a third of the country’s population.