Jul 1, 2022

Japan To Alter Regulation Of Stablecoins Due To The Threat Of Stability

The Japanese government intends to take the stablecoins under strict control, since some presenters of the power consider them the threat to the financial stability of the country. Along with this, the Bank of Japan plans to release a digital yen, which it regards as a more safe alternative to private virtual currencies.

According to Reuters, the threeJapan has announced that the country is seeking to intensify its efforts to regulate digital assets. A number of local monitoring organizations consider that stablecoins are a form of cryptocurrency, tied to the fiat currency, with the ability to add functionality

"Japan can no longer leave this question without attention, taking into account the speed of development of events in the sphere of digital currencies around the world," said one of the officials.

It is worth noting that in the last week the AgencyJapan's Financial Services Authority (FSA) has a division on digital currency regulation. In addition, the Ministry of Finance of the country considers the possibility of increasing the number of necessary employees.

The possibility of introducing the strict regulation canplay on the hands of the central bank of Japan. The institution has already begun to experiment with the release of its own CBDC (digital currency of the Central Bank), considering it the best and safe alternative private script. The bank launched a pilot program to determine the technical implementation of a similar product.

The program will consist of two stages, the firstof which has already been launched and should be completed by March 2022. The executive director of the Bank of Japan, Shinichi Uchida, noted that "the beginning of the experiments at this stage is an unavoidable step."

Recently, a popular bank of China has developedsafety on account of the fact that digital currencies, in particular stablecoins, can negatively affect the world financial system. Moreover, the deputy head of the bank, Fang Yifei, presented the standard as "instruments of speculation"

"These are the standards of some commercial organizations, especially the global standards, can create pictures and calls for the international marketplace.