financial stability), need to not only support private sector innovations but also promote the use of digital money denominated in a fiat currency in their jurisdictions. This brings me to another important issue. Should central banks issue digital money, central bank digital currencies (CBDCs)? To date, many central banks around the world have already been engaged in research activities for CBDCs.
In some European countries, central banks have been encouraged to accelerate work on issues surrounding possible public digital currency solutions in order to counter private sector initiatives in stablecoins. In Japan, the amount of cash outstanding is still increasing, and it does not seem that there is a demand for CBDC from the public at present.