An Israeli study group exploring digital currency options has recommended that the country’s central bank not issue its own token, a press release confirmed Nov. 6.

The interdepartmental team, set up in November 2017 by the governor of the Bank of Israel to “examine the issue of central bank digital currencies [CBDCs],” revealed its findings in a full report this week.

“Central banks around the world are examining the possibility of issuing digital currency and/or using distributed technologies in the payment systems, but no advanced economy has yet issued digital currency for broad use,” it summarizes, adding:

“The team does not recommend that the Bank of Israel issue digital currency in the near future. It is necessary to continue examining the field and to follow developments around the world before there are proper grounds for a decision to recommend issuing digital currency.”

The result comes as little surprise for the banking sector, multiple jurisdictions including the European Union similarly deciding this year that the atmosphere was not conducive to launching a central bank digital asset for the time being.

In a communique in September, the European Central Bank highlighted the continued popularity of cash and a lack of full risk assessment as key factors behind its decision.

However, a Cointelegraph analysis of the possibilities for CBDCs showed that the People’s Bank of China (PBoC) has been actively looking into the technology, as well as the Bank of Canada and Sweden’s central bank.

Israel has continued to adopt a proactive approach to cryptocurrency more generally this year, with the Supreme Court in February preventing banks from deliberately jettisoning ties with industry businesses.

This post is credit to cointelegraph

A top-level executive from the Bank of Japan (BOJ) revealed that the country’s central bank doesn’t plan to issue a digital currency. The BOJ justifies this decision by identifying major obstacles which prevent their further widespread adoption.  

Spoken Like a True Banker

Masayoshi Amamiya, a deputy governor of the Bank of Japan, revealed the bank’s position on cryptocurrencies. Speaking at a lecture during the autumn annual meeting of the Japan Society of Monetary Economics, the banker said that it’s questionable whether cryptocurrencies have any serious merit to improve the existing financial system:

There are many aspects we need to look into, whether it would actually contribute to improve efficacy of financial policies or financial stability.

Apart from that, however, he also outlined that if cryptocurrencies replaced cash and deposits, this would “have an impact on the bank’s ability to steer the economy” because its function as a financial intermediary will be “sharply reduced.”

Needless to say, removing unnecessary intermediaries is one of the driving principles behind the majority of cryptocurrencies.

Bank of Japan

Serious Barrier to Entry

Apart from expressing his concerns over the impact of cryptocurrencies on banks, Amamiya also said that there is a serious barrier to entry when it comes to widespread adoption:

It seems to me that the hurdle is extremely high to popularize (a cryptocurrency) as a payment system.

Despite BOJ’s rather distant position on digital currencies, the country has moved to shed regulatory clarity on the matter of cryptocurrency exchanges.

In May Bitcoinist reported that the Financial Services Agency (FSA) of Japan is set to introduce stricter legislative guidelines for cryptocurrency exchange platforms.  The move followed one of the biggest hacking attacks against Japanese cryptocurrency exchange platform Coincheck which result in the theft of more than $500 million worth of digital currencies.

In fact, FSA’s position on crypto has been rather reasonable, refraining from excessive regulations. In August the Agency noted that it “would like to see it [crypto] grow under appropriate regulation.”

What do you think of the position of the Bank of Japan on cryptocurrencies? Don’t hesitate to let us know in the comments below!

This post is credited to bitcoinist