But to solve the complexities involved in having multiple currencies, the Bank of Japan was established in 1882 as the only institution to issue banknotes. As history shows, the most basic central bank function is to issue banknotes, which are recorded as its liabilities.
As you all know, the Bundesbank is responsible for monetary policy in Germany till the end of this year, but will also continue to form part of the banking supervision authority after the start of Stage Three of European monetary union.