Bank of Japan (BoJ) governor Haruhiko Kuroda has announced that the country’s central bank is conducting research into digital currencies.
According to a report published Nov. 19 by Reuters, Japan’s central bank has taken interest in the development of a digital currency and is actively researching the technology. The news comes in the wake of China’s high-profile central bank currency, which is rumored to launch before the end of the year.
While Kuroda said the central bank has no intention to issue a digital currency in the short-term, it is researching the technology for potential implementation in the future.
Kuroda also warned against the launch of stablecoins without proper governance and risk management protocols in place. He told parliament on Tuesday,
If stable coins backed by companies with a huge customer base are issued globally, that could have an impact on monetary policy and financial system stability.
Kuroda is the latest central bank governor to weigh in on digital currencies and stablecoins, following the global regulatory storm created by Facebook’s libra.
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