While that many countries across the globe have been mulling on the idea of launching their own state-owned cryptocurrency, Japan has turned its back to any such possibility as of now.

During the latest finch conference while talking to a group of attendees, including representatives from Japan’s Financial Services Authority (FSA) and the International Monetary Fund (IMF) Deputy Governor of Japan’s central bank Masayoshi Amamiya said that the bank holds no immediate plans as of now to launch its own state-owned cryptocurrency. He further added that digital currencies issued by the Central Banks can have a large impact on the existing financial system.

During the conference, Amamiya said that the primary objective of the establishment of the central bank was to overcome “the turmoil caused by multiple payment instruments.” Hence they have an exclusive role to issue the “central bank money”.

The governor said that the existing structure of the two-tiered modern financial system “reflects the wisdom of human beings in history to achieve both efficiency and stability.” In this financial system, private banks allocate financial resources to the country’s economy through credits and loans while providing payment services to the general public.

Amamiya said that one of the major concerns of issuing a state-owned digital currency is that it will give businesses and households an direct access to the central bank accounts. He further added that “This may have a large impact on the two-tiered currency system and private banks”. Currently, only just a limited number of entities like private banks have an direct access to the central bank accounts.

However, during the conference, Amamiya also noted that it is certainly not turning its back to the technological infrastructure i.e. the Blockchain technology to foster thereby allowing the financial society to progress further and deliver secure customer experiences.