😕 BOJ deputy governor doubts digital currency will enhance monetary policy

Bank of Japan Deputy Governor Masayoshi Amamiya said on Saturday he was doubtful whether central banks could enhance the effectiveness of their monetary policies by issuing crypto. In theory, crypto would allow central banks to more easily charge interest on deposits of households and firms, thereby nudging them to spend rather than hoard money. Amamiya countered the idea, saying that charging interest on crypto would only work if central banks eliminate cash from society. Otherwise, the public will simply convert crypto into cash to avoid paying interest, he said.