Bank of Japan’s Amamiya says central banks can’t boost minus rate effect with digital currencies

FAN Editor 5 years ago
Bank of Japan Deputy Governor Masayoshi Amamiya speaks during a Reuters Newsmaker event in Tokyo
Bank of Japan Deputy Governor Masayoshi Amamiya speaks during a Reuters Newsmaker event in Tokyo, Japan July 5, 2019. REUTERS/Issei Kato

July 5, 2019

TOKYO (Reuters) – Bank of Japan Deputy Governor Masayoshi Amamiya on Friday brushed aside the idea that central banks can boost the effectiveness of negative interest rate policies by issuing digital currencies.

If central banks issue digital currencies and apply negative rates on them, households and companies will hold cash instead to avoid being charged for holding digital currencies, he said.

“To overcome the nominal zero lower bound, central banks would need to eliminate cash,” Amamiya said. “Eliminating cash would make settlement infrastructure inconvenient for the public, so no central bank would do this,” he said in a speech delivered at a Reuters Newsmaker event.

(Reporting by Leika Kihara; Editing by Chris Gallagher)

Free America Network Articles

Leave a Reply

Next Post

This 25-year-old minimalist lives and travels out of just one suitcase. Here's how

Fri Jul 5 , 2019
Henry Akerman is a living embodiment of several popular work trends. He’s traded a full time job for multiple part-time ones, in what’s sometimes called a “gig-economy.” He’s also a “digital nomad” — typically a young person who works remotely. But there’s another trend he hopes will catch on: minimalism. Akerman, […]

You May Like