The Deputy Governor of the Bank of Japan, Ryozo Himino, called on Saturday for a "comprehensive approach" in designing the future global monetary system, suggesting that the choices should not be limited solely to central bank digital currencies and stablecoins.
The United States has prohibited the issuance of a central bank digital currency and is promoting stablecoins as a means to strengthen the dollar's role as the global key currency. Meanwhile, Europe is advancing the digital euro to address regional fragmentation in retail payment systems.
Himino stated, "Japan is prepared for both paths." Japan is progressing with a pilot project for a central bank digital currency while also being among the first countries to enact legislation for stablecoins.
However, he noted that developments overseas indicate that the future monetary system requires an integrated design, taking into comprehensive consideration factors such as technical feasibility, social costs, user convenience, financial stability, and monetary policy.
In a speech at the annual meeting of the Japanese Society of Financial Economics, Himino remarked, "The options for the future monetary system are not confined to central bank digital currencies and stablecoins." Other possibilities include the introduction of tokenized bank deposits and central bank reserves operating on a blockchain.
He added that the Bank of Japan has initiated a "sandbox project" aimed at exploring the technical feasibility of tokenizing its reserves for use in blockchain-based payment solutions.
Comments