Skip to content

Deregulation of cryptocurrencies could lead to further speculation, says the director of the Japan Financial Services Agency

August 5, 2020

Ryozo Himino, the new commissioner of the Japan Financial Services Agency, says the agency is careful regarding the deregulation of private cryptocurrencies.

Noting that the COVID 19 pandemic could accelerate the transition to a cashless society, Himono highlighted the possible role of digital currencies from central banks (CBDC) Pioneer in innovations in digital payments.

“Deregulation of Bitcoin and other cryptocurrencies may not necessarily promote technical innovation if it only increases speculative trading.” He told reporters on August 5.

Japan should “seriously” consider issuing a CBDC

Deregulation of cryptocurrencies could lead to further speculation, says the director of the Japan Financial Services AgencyDeregulation of cryptocurrencies could lead to further speculation, says the director of the Japan Financial Services Agency

Himono, whose proactive commitment to cryptocurrencies was well received by the voices of the industry, He rejected the idea that the FSA would move towards market deregulation.

“We are not considering taking special measures to promote cryptocurrencies.” said.

The commissioner, who replaced his predecessor Toshihide Endo last month, said he was positive. on the recent move by the Bank of Japan to speed up a CBDC investigation.

“Worry about different challenges in the context of issuing a CBDC, the attempt to draft a plan should not overshadow. ” he said, adding:

“In the end, Japan really has to think about whether to release a CBDC as it has advantages and disadvantages. What you can do now is be ready if Japan decides to issue a CBDC, it can do it right away.”

As Cointelegraph previously reported, Himono was instrumental in the FSA’s decision to invite Blockstream’s Adam Back to a seminar in June 2019 with the G20 in Fukuoka, Japan. Various stakeholders came together during the seminar to discuss with the G20 the potential of blockchain to build decentralized financial systems.

In autumn 2019 Himono characterized Facebook’s proposal to launch a stable coin as “an alarm clock that rings for everyone”. Demanding more control over the transformations in the economic system to avoid this that innovations “lead to an out of control disorder”.

Japan and the international dynamics behind CBDCs

In January this year The Bank of Japan, together with central banks in the United Kingdom, the European Union, Sweden and Switzerland, has carried out a joint study on possible use cases for CBDCS in their respective jurisdictions.

Later that month, the deputy governor of the Bank of Japan He said the institution should be “ready to respond to a possible increase in public demand for a CBDC to be issued.”

China has now made progress with its own digital yuan, the details of which continue to draw media attention.

Receive Breaking News !

Install
×
Enable Notifications    Ok No thanks