Digital currencies won't replace paper money anytime soon, says Bank of Japan

[Cordillerabit]

Hiromi Yamaoka believes cryptocurrencies are 'too far off' from making a serious impact

Financial technology is fast revolutionising the banking industry but digital currencies will not replace physical money any time soon, a senior Bank of Japan (BOJ) official said on Wednesday.

“It’s too far off,” Hiromi Yamaoka, head of the BOJ’s payment and settlement systems department, said on the sidelines of a forum on financial innovation hosted by Thomson Reuters.

“It would change the banking system too drastically.”

Japan has become a front runner in the financial technology (fintech) industry, with the government this year having recognised bitcoin as legal tender and approved several companies as operators of cryptocurrency exchanges.

The BOJ last year set up a section in charge of fintech to offer guidance to banks seeking new business opportunities, and joined up with the European Central Bank to study distributed ledger technology (DLT) like blockchain.

But the BOJ and ECB said in September they had judged that blockchain – which is best known as the system underpinning bitcoin - was not mature enough to power the world’s biggest payment systems.

“From a practical perspective, I think this is still ‘under construction’,” Mr Yamaoka told the forum, referring to blockchain and DLT technology.

He said the hype surrounding initial coin offerings was “quite tremendous”.

http://www.independent.co.uk/news/business/news/digital-currency-bitcoin-wont-replace-paper-money-bank-of-japan-finance-banking-technology-a8069491.html

[dmcuibap]

But its already replaced paper money in some country already. Some where BTC selling at over $10000 

[Cordillerabit]

But its already replaced paper money in some country already. Some where BTC selling at over $10000 

oh really?  thank you for that info 

[Femhabe]

FIAT currency will remain and even if it remain is for the better benefit of everybody. Cryptocurrencies have it advantages that complements FIAT currency and also FIAT also complements cryptocurrencies. You will not imagine a 70 year old and above to be uptodate with crypto movement, in cases like this we need FIAT.

It is cool if blockchain system is implemented in countries and BTC is considered or allowed for transactions

[Cordillerabit]

FIAT currency will remain and even if it remain is for the better benefit of everybody. Cryptocurrencies have it advantages that complements FIAT currency and also FIAT also complements cryptocurrencies. You will not imagine a 70 year old and above to be uptodate with crypto movement, in cases like this we need FIAT.

It is cool if blockchain system is implemented in countries and BTC is considered or allowed for transactions

yes maybe this is possible to be implemented if blockchain system implemented in some countries allowed btc transaction