October 19, 2021

Reuters: Bank of Japan Explores Digital Currency Issue

Haruhiko Kuroda, Governor of the Central Bank of Japan, said that the Bank of Japan does not plan to issue digital currency, but conducts research in case the need arises in the future.

Haruhiko Kuroda noted that stablecoins should not be issued unless there is a sufficient basis for managing them and preventing the associated risks.

“If stablecoins supported by companies witha huge client base, will be released worldwide, it can affect monetary policy and the stability of the financial system, ”said Kuroda during his speech in parliament.

At the mention of Kuroda's global stablecoins,apparently, it meant the Libra Facebook cryptocurrency, the planned release of which next year causes considerable concern for regulators around the world. At the end of October, the five largest economies in the eurozone, at the initiative of France, decided to unite to hinder the development of Libra stablecoin in their jurisdictions. In addition, the US Treasury has committed to oversee the Libra project.

In September, Haruhiko Kuroda also called forinternational cooperation to ensure proper regulation of stablecoins like Libra. In July, the Deputy Governor of the Bank of Japan Masayoshi Amamiya ruled out Japan's issuance of state cryptocurrency, as this would require the country to refuse to use cash.

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