Digital Yen Would Make Crypto Markets 'More Lively,' Says CEO of Monex Group

Oki Matsumoto said a central bank digital currency would make it easier to convert cryptocurrency into legal tender.

AccessTimeIconNov 25, 2020 at 10:02 a.m. UTC
Updated Sep 14, 2021 at 10:34 a.m. UTC

The chief executive of Monex Group, a financial services firm based in Tokyo, believes central bank digital currencies (CBDC) would be a boon for the cryptocurrency market.

As reported by Reuters on Wednesday, Oki Matsumoto said the introduction of a digital version of the yen by the Bank of Japan (BOJ) would "significantly enhance the interoperability of cryptocurrencies" by smoothing the process of exchanging them into legal tender.

Further, smaller brokers don't always have bank accounts, he said.

Matsumoto's company manages a host of retail online brokerages in Japan and overseas and is also the owner of Tokyo-based cryptocurrency exchange Coincheck.

The BOJ has been exploring the implications of CBDCs since creating a task force in July and naming its most senior economist, Kazushige Kamiyama, to lead the department in charge of digital currency research and development. A proof-of-concept trial is likely to take place in 2021, the central bank said recently.

A digital yen "would make the cryptocurrency market more lively,” Matsumoto told Reuters.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Grayscale Sues SEC Over Bitcoin ETF Application Rejection

The SEC rejected Grayscale's application to convert its Grayscale Bitcoin Trust to an exchange-traded fund earlier Wednesday.

CoinDesk - Unknown
2
CoinDesk - Unknown
SEC Rejects Grayscale’s Spot Bitcoin ETF Application

Grayscale has said it was prepared for “all possible post-ruling scenarios."

CoinDesk - Unknown
3
CoinDesk - Unknown
Coinbase is Reportedly Selling Geo-Location Data to ICE

Watchdog group Tech Inquiry reported the new details about Coinbase’s three-year contract with the U.S. Department of Homeland Security.

CoinDesk - Unknown
4
CoinDesk - Unknown
Genesis Faces ‘Hundreds of Millions’ in Losses as 3AC Exposure Swamps Crypto Lenders: Sources

The DCG-owned trading colossus is said to have suffered nine-figure losses partly through exposure to Three Arrows Capital and Babel Finance.

CoinDesk - Unknown