Hiromi Yamaoka, former head of financial settlements at the Central Bank of Japan, has advised users not to use the digital yen in any way. The most surprising thing in this situation is that Yamaoka, while working at the Central Bank, was directly involved in the development of the state crypto.
However, now he has a negative attitude towards this innovation. According to a recently published report, the Japan Times has reported that the former official of the Central Bank is alarmed by the possible use of the digital yen in monetary transactions. So, he has focused on the high interest rates on loans that can be obtained in the state crypto. According to Yamaoka, active lending in this asset will reduce the cost of fiat currency to the minimum.
As a result, the former developer of the state crypto believes that the massive introduction and use of the digital yen will lead to irreversible consequences for the financial stability of Japan.
The digital yen is still in the testing phase. According to reports, the completion of the second phase of testing is scheduled for the end of 2022. Therefore, it is not yet known whether the asset will be put into mass circulation at all.