Japan's central bank researching digital currencies, says governor


Bank of Japan (BoJ), the country’s central bank, is conducting research on digital currencies, according to an official.

Haruhiko Kuroda, governor of the central bank, announced the news in an interview with Reuters published Tuesday. Kuroda added that the BoJ currently has no plans to issue a digital currency but can do so in the future if need be. 

The official is also not keen on stablecoins and believes that these should not be issued unless there is a sufficient framework in place to ensure governance and risk management. “If stable coins backed by companies with a huge customer base are issued globally, that could have an impact on monetary policy and financial system stability," said Kuroda.

The BoJ has previously also raised financial stability concerns related to digital currencies and stablecoins. In April 2018, the BoJ’s deputy governor Masayoshi Amamiya said issuing a digital currency may have a “large impact” on the country’s “two-tiered currency system and private banks’ financial intermediation.”

Most recently, Amamiya said the central bank has no plans to issue digital currencies for now partly due to its impact on commercial banking. “If central bank digital currencies replace private deposits, that could erode commercial banks’ credit channels and have a negative impact on the economy,” Amamiya said at the time.

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Why BTG Pactual is launching a crypto platform

Brazil-based BTG Pactual, Latin America’s biggest investment bank, is launching its own crypto asset platform that will initially support bitcoin and ether trading. The platform will be called Mynt and allow customers to purchase bitcoin and ether, BTG Pactual’s Head of Digital Assets André Portilho tells The Block. Eventually, the platform will support other digital […]
Read Full Story
Sep 24, 2021, 9:17PM UTC

TRON USDC now available

Delivering on a vision for an interoperable global standard for dollar digital currency, Circle and TRON have partnered to make USD Coin (USDC) available on the TRON blockchain, which has grown to more than 56 million accounts and nearly 2.5 billion transactions since its founding just four years ago. TRON is home to a broad ecosystem for digital assets in Asia and around the world, and the TRON community can now benefit from easy access to the world's fastest-growing, regulated dollar digital currency. 
Read Full Story
Sponsored Post