By Leika Kihara<\/p>\n
TOKYO, May 16 (Reuters) – Bank of Japan Deputy Governor Ryozo Himino on Saturday called for a “holistic approach” in designing the global \u200cfuture monetary system that does not confine options to central bank digital \u200ccurrencies and stablecoins.<\/p>\n
The U.S. prohibits the issuance of CBDCs and promotes stablecoins as a means to \u200bstrengthen the dollar’s position as a global key currency, while Europe is promoting a digital euro to overcome regional fragmentation in retail payment systems.<\/p>\n
“Japan is prepared for both paths,” having been a pioneer in introducing stablecoin legislation while advancing a pilot programme \u200cfor CBDCs, Himino said.<\/p>\n
But developments \u2060overseas suggest a holistic design is needed for the future monetary system that takes into account factors such as technical feasibility, \u2060social costs, user convenience, financial stability and monetary policy, he said.<\/p>\n
“Options for the future monetary system are not limited to CBDCs and stablecoins,” with other options available such as \u200bintroducing tokenised \u200bbank deposits and central bank reserves operating \u200bon blockchain, Himino said in \u200ca speech at an annual meeting of the Japan Society for Monetary Economics.<\/p>\n
The BOJ has begun a “sandbox project” to explore the technical feasibility of tokenising its reserves and using them for blockchain-based payment solutions, he added.<\/p>\n
The BOJ manages interbank settlement, liquidity and monetary policy through commercial banks’ reserve accounts held at the central bank.<\/p>\n
Introducing \u200cblockchain technology to settle such reserves would allow \u200bscope for instant settlement 24 hours a day \u200band reduce gridlock risk in stress \u200bevents, analysts have said.<\/p>\n
The BOJ began experiments for issuing a \u200cCBDC in 2021. While no decision \u200bhas been made on \u200bwhether to issue such a currency, the central bank started a pilot programme in 2023 for retail CBDC that would be distributed via private banks \u200bor payment firms.<\/p>\n
Japan’s government \u200chas also supported a project by major domestic banks to issue stablecoins \u200bthat will be tested for use in cross-border payments.<\/p>\n
(Reporting by Leika \u200bKihara in Tokyo; Editing by William Mallard)<\/p>\n","protected":false},"excerpt":{"rendered":"By Leika Kihara TOKYO, May 16 (Reuters) – Bank of Japan Deputy Governor Ryozo Himino on Saturday called…\n","protected":false},"author":3,"featured_media":800597,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[6238,64,127791,79,156124,2177,326180,326181,326182,67,132,68],"class_list":["post-800596","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bank-of-japan","tag-business","tag-digital-currencies","tag-economy","tag-holistic-approach","tag-monetary-policy","tag-monetary-system","tag-retail-payment-systems","tag-technical-feasibility","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116584419606973802","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/800596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=800596"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/800596\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/800597"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=800596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=800596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=800596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}