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Libra made us think seriously about CBDCs, says the former president of the Central Bank of Japan.


Hiromi Yamaoka, former head of payments and liquidations of the Bank of Japan (BOJ) said that the launch of Facebook of stablecoin Libra made central banks around the world begin to think seriously about the issuance of a digital currency of the Central Bank (CBDC) ), according to a report published by Reuters.

Yamaoka was responsible for research on CBDC and digital currencies at the Japanese federal institution and is currently a member of the board of IT consultant Future Corp. In addition, according to the report, along with Japan, the central banks of Canada, the United Kingdom , the European Union, Sweden and Switzerland announced the creation of a group together with the Bank for International Settlements (BIS) to study CBDC and its applications.

“The decision to study CBDC is to share information, but also an effort to keep something like Libra under control. (…) The world's leading central banks need to develop a more efficient settlement system that promotes the best use of digital technology, ”said Yamaoka.

The former director of the Japanese bank also expressed concern about central banks that stifle private sector innovation and the benefits of using CBDC to increase the effectiveness of central bank measures.

"If you want the monetary policy to be effective, you must ensure that people continue to use the currency they issue."

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