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Yugong Zhengjia, vice president of the Bank of Japan, said Thursday that central banks must have a deeper understanding of the advantages and disadvantages of issuing their own digital currencies and study ways to mitigate any related risks.
If the central bank succeeds in issuing low-cost digital currencies, it could stifle financial innovation in the private sector and attract deposits from commercial banks, he said.
"When countries consider issuing central bank digital currencies, they must conduct a comprehensive study of the possible impact on the settlement and financial system," said Yoshiya yumiya in a speech on the Japanese settlement system in Tokyo.


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