In line with an official ‘report‘ published, Central bank of Japan has examined the role of CBDCs [Central Bank Digital Currencies] within the current financial system.
Explaining further within the report, the bank describes the expected ways to implement a CBDC and therefore the hypothetical consequences of various approaches. The report divides possible CBDCs in two classes, the primary being those accessible to the overall public in a form alike banknotes, along the others as those restricted for large-value settlements.
The source of this categorization is attributed to the report revealed by the Bank for International Settlements in March last year, that divided CBDCs general purpose and wholesale CBDCs.
Moreover, after explaining that CBDCs of the latter kind wouldn’t bring several new options to the financial system, the Japanese report’s authors focused on the primary kind throughout most of the document. The report additionally outlined that DLT [distributed ledger technology] and blockchain can be used for a token-based CBDC.
As ‘reported‘ earlier in Oct. last year, the deputy governor of Japan’s Reserve Bank, named ‘Masayoshi Amamiya’, expressed a negative stance towards central bank-issued digital currencies.
However just recently, ‘South Korea’s‘ Reserve Bank issued a warning over central bank digital currencies a week after stating it’d not introduce one itself.