I would like to elaborate on these issues further. Innovation and Currency System Looking back in history, many central banks, including the Bank of Japan, were established to overcome the turmoil caused by the issuance of multiple payment instruments in a disorderly manner, so as to restore stability of the monetary system.
In order to fulfill such a mission, central banks were exclusively assigned the role of issuing "central bank money" with finality, namely, banknotes and central bank deposits. The modern currency system, which consists of a central bank and private banks, is characterized as "a two-tiered system."