The head of the Bank of Japan, Haruhiko Kuroda, said that there is no demand for a state-owned digital currency in the country, and the Japanese banking group Mitsubishi UFJ Financial Group (MUFG) denied the launch of a stablecoin.
In his speech at the Symposium dedicated to the 35th anniversary of the Center for the introduction of information technologies in the Finance industry, Haruhiko Kuroda spoke about the problems that can carry state and ordinary stablecoins. In conclusion, Kuroda added that it makes no sense for Japan to issue its own digital currency.
“In Japan, the total amount of the population’s debt is constantly growing, so at the moment there is no demand for the state digital currency. At the same time, the Bank of Japan is studying the technical and legal side of this issue in order to be ready to create its own stablecoin if necessary,” said Haruhiko Kuroda.
Despite the fact that the head of the Bank of Japan does not yet see the prerequisites for launching a national digital currency, he encourages its use and believes that such stablecoins need to be improved and “brought to mind” until all the associated risks are eliminated.
In addition, Kuroda expressed his opinion about the Libra coin from Facebook, believing that in this case, banks should behave more carefully.
“International stablecoins like Libra can offer users convenient payments, but only if they are technically stable and have a clear legal status. At the same time, it is necessary to completely eliminate the risks associated with money laundering, cybersecurity, as well as the protection of user data and consumer rights,” said Haruhiko Kuroda, adding that no stablecoin should be issued until all these tasks are solved.
Meanwhile, Japanese banking group Mitsubishi UFJ Financial Group denied information about the launch of its own digital currency. Earlier it was reported that next year MUFG plans to launch a stablecoin pegged to the Japanese yen in a ratio of 1:1.AS the mufg management clarified, the final decision on launching the digital currency has not yet been made.