BOJ Governor Calls For Global Cooperation To Regulate Stablecoins; Especially Facebook’s Libra
Bank of Japan governor, Haruhiko Kuroda, spoke to Reuters on Tuesday this week calling for global cooperation on the regulation of cryptocurrencies – putting emphasis on regulation of Facebook’s Libra cryptocurrency.
Global Cooperation to Regulate Libra
The BOJ Governor spoke in a business meeting with leaders from various industries in Osaka, Japan saying global regulators should take the highest level of caution while applying the regulation to stable coins and other digital assets. He further commented,
“If Libra is introduced, it could have a huge impact on society.”
Libra remains unpopular across governments and financial authorities. Some of the authorities view the stable coin as a huge hindrance to monetary sovereignty. While Japan remains one of the highly regulated spaces in the digital asset space, the launch of Libra has become a huge issue among authorities.
The South East Asian country has been a vocal player in the regulation of the crypto industry, a value proposition which has increased the number of crypto companies relocating to the country.
No Love for Libra from Regulators
The digital asset that is expected to launch in 2020 is considered by a number of governments as a threat to monetary policy alongside other financial risks. Earlier in the year, the Bank of Japan released a statement on the difficulties of regulating Libra cryptocurrency.
In August, the Finance Ministry in France agreed with U.S President’s, Donald Trump, sentiments on Libra as a currency saying it diminishes the countries monetary sovereignty. A statement from the ministry read,
“We will not allow private enterprises to give themselves the attributes of state sovereignty… the means of monetary sovereignty.”