Japan’s FSA chief says that the country has no plan in deregulating Bitcoin trading and that there’s no need to promote cryptocurrencies but working on CBDCs is a must so let’s find out more in the upcoming Bitcoin news today.
In an interview with Reuters, Japan’s FSA chief said there were no plans to promote crypto trading but he did express a lot of enthusiasm for central bank digital currencies as the country is speeding up in creating one. The head of the Japanese Financial watchdog said that there should be more focus on central bank digital currencies than the promotion of cryptocurrencies that are not pegged to the fiat such as BTC.
Ryozo Himino was appointed as a new commissioner of Japan’s Financial Services Agency who said that deregulation of digital assets such as Bitcoin could not help technical innovation saying that if deregulation increases speculative trading, it will not be worth anymore and the FSA will not think further of taking steps to promote cryptocurrencies.
Himino praised the country’s enthusiasm for developing one CBDC telling Reuters that the country should think hard before launching a central bank digital currency because of the potential “merits and demerits” if launched. A Central bank digital currency would offer the country a lot more flexibility in its monetary policies but such currencies have been criticized by privacy proponents saying they will be overly invasive. The new chief financial regulator added that Japan will be ready to launch a CBDC and continue research as the current COVID-19 pandemic could lead to a cashless society. Himino chaired the G20 debate last year as well on regulating crypto.
Japan is one for the few countries around the world that is racing towards creating a digital version of the national currency that is controlled by a central bank. The Central Bank director-general Takeshi Kimura, said last year that the talks about a digital yen moved beyond the preparatory stage adding that CBDCs are a top priority. Japan has a huge competitor-China, which is the most advanced country by far in regard to digital currency development. According to the BIS (Bank of International Settlements), more than 80% of the central banks across the world are working on or are researching the possibility of a CBDC which are thought to speed up financial transactions and potentially even replace cash.
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