In line with a recent report by ‘Reuters’, Japan’s renowned senior banking figure has aforesaid that the central banks can’t use cryptocurrencies to enforce negative interest rates.
While speaking at recent event held by the publication, Masayoshi Amamiya, deputy governor of the Bank of ‘Japan‘, added that states offering crypto currencies with a negative rate of interest would force inhabitants towards cash.
This cash supply would remain, Amaiya added, and despite the present trend to switch it, no government would actually try this.
“To the nominal lower bound, central banks need to eliminate the cash,” he explained.
“Eliminating cash would create settlement infrastructure inconvenient for the general public, thus no central banks would try this.”
Negative interest rates refer to banks charging holders of deposits to keep them endowed. Japan was one amongst the countries is following these practise since 2016, along with the European Central Bank.
At that time, individuals realized the potential of the decentralized cryptocurrencies like Bitcoin [BTC] to offer a more secure alternate to effectively paying to use money.
Japan’s existing bitcoin infrastructure is the foremost advanced, with a comprehensive restrictive system permitting the emergence of bonafide exchanges as well as thousands of bitcoin-accepting merchants.
Other jurisdictions alot most hostile to bitcoin have in recent times either issued, or proclaimed their intention to issue, a government-backed ‘cryptocurrency‘.