Central bank digital currency will help ease trading in cryptocurrencies

In a statement, Oki Matsumoto, the head of Japan’s Monex Group said, digital currencies of Japan’s central bank will help boost trading of cryptocurrencies by providing a trusted and convenient platform for converting them into legal tenders.

Welcoming the move the Bank of Japan, Matsumoto, the CEO of the Monex Group said, it will look into the idea of issuing a central bank digital currency (CBDC) as it will streamline Japan’s efforts towards a digital economy.

“CBDCs will significantly enhance the interoperability of cryptocurrencies,” said Matsumoto. “It would make the cryptocurrency market more lively.”

Currently, converting cryptocurrencies into legal tenders is not easy since many smaller cryptocurrency exchange brokers do not have bank accounts, said Matsumoto. Once CBDCs are issued, it would offer a consumer friendly platform wherein cryptocurrencies can be converted into legal tenders smoothly.

Last month, the BoJ said, it would begin experimenting on how to operate its own digital currency, joining efforts by other central banks to catch up with cryptocurrencies, which have been termed as the future of money.

Monex is an owner of Coincheck, a bitcoin exchange operator based in Tokyo.

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