In our latest digital currency news today, the deputy governor of the Bank of Japan noted that central bank-issued digital currencies are not an effective economic tool.
Deputy governor Masayoshi Amamiya confirmed his stance at a meeting in central Japan where he expressed his doubts about using digital currencies by saying that they are unlikely to improve the current monetary system or and that the Bank of Japan has no intention to issue digital currencies at all.
Other financial experts beg to differ. The supporters believe that cryptocurrencies are a great tool for central banks and that with them; banks can control the economy more easily. Also, by using them, the banks will further stimulate the economy by charging more interest on deposits from people and companies that will make them spend even more money.
However, Amamiya doesn’t agree with this theory claiming that by charging more interest the public will continue to convert digital currencies into cash so they will avoid paying it at all. If the central banks eliminate fiat money from the entire financial system, on the other hand, that theory could work.
“In order for central banks to overcome the zero lower bound on nominal interest rates, they would need to get rid of cash from society,’’ said Amamiya.
This is not the first time Amamiya expresses his skepticism about digital currencies. He firmly believes that cryptocurrencies will have a negative impact on the current financial system. However, he considers emerging into fintech in the future.
Russia Is Not Planning To Buy $10 Billion In Bitcoin
“This statement has no common sense. The Russian Federation — like any other country in the world — is simply not ready to combine its traditional financial system with cryptocurrencies.”Sidorenko reacted to the fake news reports from Telegraph where it was noted that Russia wants to invest $10 billion in bitcoin in order to mitigate the economic impact that is brought up from the US sanctions. The rumors emerged on Twitter where a particular user wrote that Kremlin has no choice but to invest in bitcoin and that it is the only way to avoid the harsh sanctions by President Trump. Ginko posted on Twitter and his post went viral after Telegraph wrote a story about it and lots of other websites just added their own touch to it. Ginko is known to the public for making such shocking tweets and comments after once saying that sham investment adviser Bernie Madoff is the real Satoshi Nakamoto. However, Sidorenko said that Ginko’s comments are absurd:
“Even if Russia wants to place its cryptocurrency assets now, it simply cannot do this. We do not have any mechanisms that would allow us to introduce a system: where these assets would be stored, which authorities would be responsible for it, which would be responsible for abuses and stuff.”However, according to Tota Kaliaskarova, the director of macroeconomic policy with the Eurasian Economic Union says that crypto could have a huge impact on the Eurasian economy.
Huobi Re-Launched As Fully Licensed Platform In Japan
$1 Billion In Transactions Reported For 2018 By BitPay
WordPress Is Launching A Publishing Platform With Blockchain Features
Join us on Facebook
- Russia Is Not Planning To Buy $10 Billion In Bitcoin
- Huobi Re-Launched As Fully Licensed Platform In Japan
- $1 Billion In Transactions Reported For 2018 By BitPay
- Third Audit Attestation Of USDC Stablecoin Reserves Released By Circle
- 21-Year Old Accused Of Stealing More Than $24 Million Worth Of Crypto
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
Altcoin News5 days ago
Bitcoin Hovers Near $3,700 As Top Altcoins Record A Mix Of Reds And Greens
Ethereum News3 days ago
Coinbase And Kraken Officially Supporting ETH’s Constantinople Hard Fork
Ethereum News5 days ago
$100,000 Reportedly Returned From Ethereum Classic 51% Attacker
Altcoin News4 days ago
Bitcoin Drops Below $3,600 As $5 Billion Get Wiped Out Of The Crypto Market
Altcoin News4 days ago
Major Swiss Bank Launches A Crypto Custody Solution Targeting Banks & Asset Managers
Bitcoin Scams3 days ago
New Torrent Malware Posing As Movie File Can Replace BTC & ETH Addresses: Researcher
Blockchain News5 days ago
Washington’s Douglas County Wants To Build A Blockchain Innovation Campus
Bitcoin News4 days ago
American Businessman Still Missing After $950,000 In BTC Ransom Paid