Bank of Japan’s governor Haruhiko Kuroda said on Tuesday that no global stablecoins should be issued until all legal, regulatory, oversight challenges and associated risks are adequately addressed. He added that these stablecoins could have significant implications on the financial system and the transmission of monetary policy.
Japan has no immediate plans to issue digital currency
Recently, Japan published a report about central bank-backed digital currency that delves into the legalities of issuing a digital Yen. However, the bank confirmed that they do not have any plans for issuing a digital currency, but they will continue to study CBDC and its potential impact on the economy.
Several countries are considering to issue CBDC.
Japan’s neighboring country China is all set to launch its digital currency sometime next year that promises to challenge the US dollar’s dominance in the global financial market. Most of the developed countries are studying and considering to issue their national digital currency while maintaining a firm stance on decentralized cryptocurrencies. Canada, US, and Turkey are some of the countries that are studying CBDCs.
Earlier, the Central Bank of Russia reported that it would support the idea of banning cryptocurrencies as a mode of payment in the country.
