top of page
ad cnp.png

Bank of Japan Senior Official Warns G7 Nations Need To Be Put In Place As Quickly As Possible

Reports said that a senior official from the Bank of Japan (BOJ) warned G7 nations that a common framework for regulating digital currencies needs to be put in place as quickly as possible. G7 refers to the Group of Seven, an inter-governmental political forum made up of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

It has been reported that the statement comes in response to the continued conflict between Russia and Ukraine, as cryptocurrencies and their potential applications for skirting economic sanctions fall under increasing scrutiny.

Kazushige Kamiyama, the Head of the BOJ‘s payment systems department, said that using stablecoins makes it very easy to “create an individual global settlement system,” which would, in turn, make it easier for nation-states to evade more traditional and regulated payment systems that use the US dollar, euro, or yen for settlement.

Kamiyama added that a sense of urgency is paramount if the G7 nations are to effectively coordinate regulation of cryptocurrencies and digital assets, as the current regulations do not fully consider their growing adoption and proliferation throughout the world.

He added that this regulatory framework would affect the design process of Japan’s own central bank digital currency (CBDC) — the digital yen. There would be a need to carefully balance individual privacy with concerns about money laundering and other white-collar crimes.

Haruhiko Kuroda, the governor of the BOJ, announced at Japan’s FIN/SUM fintech summit last Tuesday that it has no plans to introduce a CBDC anytime soon. Kuroda explained that the BOJ plans to carefully consider the expected roles of central bank money in the lives of Japanese citizens.

He added:

“We consider it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner, from the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems.”

The report said that Kuroda’s remarks come just four days after the BOJ announced that it is moving onto phase two of testing the viability of a Japanese CBDC. Phase two is set to begin this month, so any new regulations decided upon by the G7 will have some impact on this process.

Thus, Kuroda said that a decision on whether to issue CBDC in Japan will most likely be reached sometime in 2026, depending on the speed at which CBDC adoption occurs throughout the rest of the world.

Source: Cointelegraph


bottom of page