Bank of Japan Shoots Down Talks About the Country Developing a CBDC

The Governor of the Bank of Japan, Haruhiko Kuroda, announced that claims of Japanese citizens demanding a Central Bank Digital Currency were false.

At a symposium for the 35th anniversary of the Center for Financial Industry Information Systems, which was held on the 4th of December, Kuroda talked about the problems that Stablecoins and CBDCs posed. He stated that there was no apparent necessity or demand for a CBDC in the country. Nonetheless, the BOJ is carrying out researches and investigations into the initiative just in case a CBDC becomes necessary in the future. Kuroda also spoke about the necessity of studying the effect of CBDCs on the economy.

Kuroda Acknowledges the Usefulness of Stablecoins
Even though Kuroda doesn’t see the point of having a national CBDC, he acknowledges that there is an assortment of private digital currency denomination in the Yen. The financial institutions promoted the utilization of such digital currencies, striving to bring about characteristics that look like CBDCs.

A method the financial institutions are practicing to enhance such operations is by boosting the number of cashless payment users and guaranteeing interoperability between different payment service platforms. Some months ago, the institution initiated a reward scheme for loyal customers who use cashless payments to enhance the efficiency of corporations.

Japan is Avoiding Everything Stablecoin for Now
Kuroda has however indicated that global Stablecoins like Libra are considerable alternatives as they can provide effective payment services for its users. Regardless, he explained that GSCs cannot be adopted at this time considering the problems associated with it. Some of these problems include money laundering, data security, and customer insurance all of which have not been adequately dealt with yet.

Kuroda also stated that no GSC will be approved to carry out business in the country until regulatory and legal matters have been dealt with. He went on to implore administrations across the globe to work together and sustain financial durability by supporting free capital mobility.

Regardless, multiple countries across the globe are in serious pursuit of the development of CBDCs and Stablecoins.