Bank of Japan Studying the Role of Digital Currencies: Bank’s Governor Haruhiko Kuroda
Japan is well known for its positive crypto regulations and has become a guiding light for G-20 nations in order to help them formulate their own positive crypto regulations. Now as per the latest development the Central Bank of Japan called Bank Of Japan (BoJ) has initiated research on digital currencies, revealed the bank's chairman Haruhiko Kuroda.
Kuoda revealed that although there are no plans of launching a central bank-issued digital currency (CBDC), the research would ensure that if there is a need in the future, the Central Bank would be more than capable for launch.
Kuroda in his interview with the Reuters also talked about the increasing trend of stable coins, he said that stable coins should not be launched until a rigid framework has been put in place to ensure risk management and governance. He explained,
“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,”
Kuroda's statement seemed to be inspired by the recent drama and regulatory concerns surrounding Facebook's stable coin project libra. Japan was one of the many countries that raised its concerns over the working model of Libra and how it could lead to an imbalance in the private and government banking sector.