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 â€œsignificantly enhance the interoperability of cryptocurrenciesâ€ by smoothing the process of exchanging them into legal tender.
Further, smaller brokers donâ€™t always have bank accounts, he said.
Matsumotoâ€™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 having set up a task force in July and moving 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.
â€œ[A digital yen] would make the cryptocurrency market more lively,â€ Matsumoto told Reuters.