According to the Bank for International Settlements, the value of fiat money (banknotes and coins) was 20% of Japan’s GDP in 2016, which was the highest among the developed countries. The Head of Financial Technologies Department of the Bank of Japan Yuko Kawai argues that for some services in Japan you can still pay only in cash, so it’s hard for citizens to accept an alternative.
“We do not think that it is a vital issue to create our own digital currency at this stage, since there is no demand from the public. Do we need it at all? Citizens prefer to use cash”, Kawai said, “The fact is that people do not experience any inconvenience and do not download mobile applications. The demand for cash is very large and our task is to satisfy it”
In the future the trend can be changed as the needs of the citizens change all the time. However, according to Kawai, digital currencies can not yet be considered as means of payment, as the technology of blockchain is still at an early stage of development, and the market of cryptocurrency is very speculative.