The head of BOJ payment systems says the status of dollar as the key global currency won’t change so easily. The Bank of Japan head official who is also responsible for digital currency, Kazushige Kamiyama is positive about the stance of the dollar. He also noted that the dollar’s advantage could strengthen if the US decides to digitize. Is Digital Yuan a Threat to Dollar? BOJ Official Thinks Otherwise The BOJ official is responsible for the research and development of his own country’s digital currency. The statement from the senior official from the Bank of Japan (BOJ) reads “China’s digital yuan does not threaten the dollar as the world reserve currency.” From the report published earlier this week, the new white house is increasingly scrutinized for Chinese developments on their digital yuan. The major concern is that the efforts could replace the dollar as the world reserve currency. However, Americans seem to be less concerned, but at the same time confused on how the Chinese governance will distribute digital yuan and find a way around the US sanctions. Since 2014, the People’s Bank of China (PBOC) has been working on a digital currency. China’s Digital Currency Electronic Payment (DCEP) proceeded with the digital yuan testing phases in March. That was considered the biggest trial for digital currencies till now. Digitized Dollar Would be Stronger As a Global Currency Kamiyama further highlighted the suspicion he has regarding the digital yuan, stating; “I believe technology is constantly evolving, and the technology that they’re using currently might become outdated,” he said. “It might even hinder further technological innovation,” Kamiyama added. Also, according to him, for a currency to become popular, there are certain aspects that have to be fulfilled. For example, the currency has to be safe, must have a stable value, and has the ability to move across borders without restrictions. In his view, Yuan doesn’t match those standards. Last week, the first phase of experiments with CBDC was initiated by the BOJ. Kamiyama said that “The BOJ is participating in group studies with the Bank for International Settlements and six central banks. Among these are the US Federal Reserve (Fed) and the European Central Bank.”
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