Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Facebook    FB


News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Facebook spurred central banks to study digital currencies: former Japan central banker

share with twitter share with LinkedIn share with facebook
share via e-mail
01/22/2020 | 02:10am EST
Libra logo in illustration picture

The challenge posed by Facebook's Libra cryptocurrency likely prodded major central banks to set up a new group to study the potential for issuing their own digital currencies, a former Bank of Japan executive said on Wednesday.

The central banks of Britain, the euro zone, Japan, Canada, Sweden and Switzerland on Tuesday announced a plan to share experiences to look at the case for issuing digital currencies, amid a growing debate over the future of money.

Hiromi Yamaoka, former head of the BOJ's division overseeing payment and settlement systems, said the decision was a sign of how Libra has triggered a global competition among central banks to make their currencies more appealing.

"The latest decision (by the six central banks) is not just about sharing information. It's also an effort to keep something like Libra in check," said Yamaoka who, during his stint at the BOJ, was directly in charge of negotiations on new technology.

"Something like Libra would make transactions costs much cheaper. Major central banks need to appeal that they, too, are making efforts to make settlement more efficient with better use of digital technology," he told Reuters.

Currently a board member at IT consulting firm Future Corp, Yamaoka oversaw the BOJ's research into digital currencies and retains close contact with global central bank policymakers.

Central banks across the world have quickened the pace at which they are looking at issuing their own digital currencies, also known as CBDCs. Facebook push to launch its Libra cryptocurrency has added fuel to questions over whether nation states will continue to control money in the decades ahead.

Of the major central banks, China's has emerged as the frontrunner in the drive to create its own digitized money, though details of its project are still scarce.

The BOJ has undertaken a joint research project with the European Central Bank, but has said it has no plan to issue CBDCs in the near-term horizon.

Yamaoka said the creation of the joint study group could speed up moves by the central banks to use blockchain technology for large-scale, wholesale settlement.

But the hurdle for central banks issuing digital currencies for small, retail settlement remains "very high," as doing so would stifle private-sector competition, he said.

Yamaoka also countered the view, held by some academics, that central banks could deepen negative interest rates more easily by issuing digital currencies.

"In the world of central bankers, the idea of using CBDCs to enhance the effect of monetary policy seems to have subsided somewhat," he said.

"There are increasing doubts about the effect of negative interest rates as a policy tool," Yamaoka said. "If so, do you want to issue CBDCs for the sake of deploying a policy with questionable effects?"

The more imminent factor driving central banks into studying CBDCs is the need to boost their currencies' convenience so they survive in an age of diversifying settlement means, he said.

That is why the Federal Reserve, which issues the world's most-used currency, isn't interested in CBDCs, Yamaoka said.

"If you want to make monetary policy effective, you need to ensure people keep using the currency you issue."

By Leika Kihara and Takahiko Wada

Stocks mentioned in the article
ChangeLast1st jan.
EURO / JAPANESE YEN (EUR/JPY) -0.16% 120.731 Delayed Quote.-0.69%
FACEBOOK -2.05% 210.18 Delayed Quote.2.40%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on FACEBOOK
01:00aEx-Facebook executive starts group to help employees push companies on climat..
02/23Does the U.S. Need a National Digital Currency? -- Journal Report
02/23G20 finance heads eye impact of coronavirus outbreak on growth, see modest pi..
02/23No global digital tax by end-2020 would mean chaos - France
02/23G20 finance heads eye impact of coronavirus outbreak on growth, see modest pi..
02/22Let's come together to tax tech giants, say G20 officials eyeing $100 bln boo..
02/22Encryption on Facebook, Google, others threatened by planned new bill
02/22U.S. blocking G20 mention of climate change in draft communique, diplomats sa..
02/21Big tech cos pull out of San Francisco conferences on coronavirus concerns
More news
Financials (USD)
Sales 2020 85 662 M
EBIT 2020 31 475 M
Net income 2020 25 987 M
Finance 2020 68 372 M
Yield 2020 -
P/E ratio 2020 23,3x
P/E ratio 2021 19,4x
EV / Sales2020 6,20x
EV / Sales2021 5,00x
Capitalization 599 B
Duration : Period :
Facebook Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FACEBOOK
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 52
Average target price 244,76  $
Last Close Price 210,18  $
Spread / Highest target 42,7%
Spread / Average Target 16,5%
Spread / Lowest Target -42,9%
EPS Revisions
Mark Elliot Zuckerberg Chairman & Chief Executive Officer
Sheryl Kara Sandberg Chief Operating Officer & Director
David M. Wehner Chief Financial Officer
Michael Todd Schroepfer Chief Technology Officer
Atish Banerjea Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
FACEBOOK2.40%599 108
TWITTER19.53%29 915
MATCH GROUP, INC.-10.49%20 778
NEW WORK SE-8.56%1 630