A senior Bank of Japan (BOJ) official warned G7 countries that a common framework for regulating digital currencies needs to be introduced as quickly as possible.
The G7 refers to the Group of Seven, an intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
This statement addresses ongoing disputes between Russia and Ukraine as cryptocurrencies and their potential applications to circumvent economic sanctions are being increasingly scrutinized.
Head Bank of Japan Mr. Kazue Kamiyama of the payment system department Reuters With stable coins, it’s very easy to “create a personalized global payment system”. This makes it easier for nation-states to circumvent traditional regulated payment systems that use US dollars, euros, or yen for payments.
Mr. Kamiyama said that the current regulations do not fully consider the expansion of adoption and spread around the world, so it is urgent for G7 countries to effectively adjust to regulate cryptocurrencies and digital assets. He added that sensation is of utmost importance.
Kamiyama added that this regulatory framework would influence Japan’s own central bank’s digital currency design process ().CBDC) — Digital circle. You need to carefully balance your personal privacy with concerns about money laundering and other white-collar crimes.
Haruhiko Kuroda, Governor of the Bank of Japan announcement At the FIN / SUM FinTech Summit in Japan held on March 29, it was announced that there are no plans to introduce CBDC soon. Kuroda explained that the Bank of Japan will carefully consider the expected role of central bank money in Japanese life.
“From the perspective of ensuring the stability and efficiency of the payment system as a whole, we believe it is important to be well prepared to respond appropriately to changing circumstances.”
Related: Former Bank of Japan officials warn against the use of the digital yen in the financial sector
Kuroda’s remarks are only four days after the Bank of Japan announcement Going to Phase 2 to test the feasibility of the Japanese CBDC. Phase 2 is scheduled to begin this month, so the new regulations decided by the G7 will have some impact on this process.
Kuroda said the decision to issue a CBDC in Japan is likely to take place in 2026, depending on the speed at which the CBDC is adopted around the world.
