Cryptocurrency Warning from Bank of Japan to G7 Countries!
A senior official from the Bank of Japan ( BOJ ) warned the G7 countries that a common framework for regulating digital currencies should be put in place as soon as possible.
Crypto Alert from Bank of Japan Official to G7 Countries
The Bank of Japan warned the G7 countries that a common regulatory framework for cryptocurrencies should be introduced quickly , as current rules do not take into account the potential for digital assets to be used to circumvent sanctions .
The G7 refers to 7 countries, an intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
The statement came in response to the ongoing conflict between Russia and Ukraine , as cryptocurrencies and their potential applications to circumvent economic sanctions come under increasing scrutiny.
Kazushige Kamiyama , head of the BOJ’s payments systems department , told Reuters that using stablecoins makes it very easy to “build an individual global payments system,” which in turn will make it easier for nation-states to avoid more traditional and regulated payment systems.
Kamiyama added that a sense of urgency is crucial if the G7 countries are to effectively coordinate to regulate cryptocurrencies and digital assets, because current regulations do not fully take into account their increasing adoption and proliferation around the world.
On the other hand, Kamiyama added that this regulatory framework will affect the design process of Japan’s own central bank digital currency ( CBDC ) – the digital Yen.
In addition to his remarks, the head of the payment systems department said there would be a need to carefully balance individual privacy with concerns about money laundering and other white collar crimes.
Japan Has No Plans To Implement A CBDC Any Soon
Japan has no plans to introduce a CBDC anytime soon , BOJ governor Haruhiko Kuroda said at the FIN/SUM fintech summit on March 29. Kuroda explained that the BOJ plans to carefully consider the expected roles of central bank money in the lives of Japanese citizens.
In order to ensure the stability and efficiency of the overall payment and settlement systems, we consider it important to be thoroughly prepared to respond appropriately to changes in circumstances.
Kuroda’s remarks came just four days after the BOJ announced it had entered the second phase of testing the viability of a Japanese CBDC . The second phase will start this month, so the new regulations decided by the G7 will have some impact on this process.
Kuroda said a decision on whether to issue CBDC in Japan will likely be made in 2026, based on the pace of CBDC adoption in the rest of the world.