Ryozo Himino, the new Japanese senior financial regulator, has voiced against Bitcoin deregulation in the country. Instead of deregulating cryptocurrencies, the regulator wants the country to focus more attention on the development of the planned central bank digital currency (CBDC). With the bank’s digital currency, the country can support cashless transactions amid the present pandemic.
CBDC, not Bitcoin deregulation
Himino is the new commissioner at Japan’s Financial Services Agency. On Wednesday, the regulator disclosed to Reuters in an interview that Bitcoin deregulation might be another new approach in promoting crypto trading in the country. He emphasized that Bitcoin deregulation will only increase speculative trading.
It will not necessarily encourage technical innovations, according to Himino, who added that they are “not thinking of taking special steps to promote cryptocurrencies.” Having cautioned against Bitcoin deregulation, Himino praised the central bank’s moves in developing the national digital currency, as the present coronavirus pandemic heightens the need for a cashless society.
The commissioner encouraged the central bank to continuously drive more actions towards the development of the Japan CBDC. However, Himino acknowledged that there could be challenges that might be associated with the issuance of the bank’s digital currency. Thus, he said that Japan should equally consider ways to address those challenges if the CBDC must be issued.
We shouldn’t be worrying about various challenges without even trying to design a plan (for issuing CBDCs). […] In the end, Japan must think really hard about whether to issue CBDCs because there are merits and demerits to doing so. What it can do now is to be ready so that when Japan decides to issue CBDCs, it can do so straight away.
Japan is among the Asian countries racing towards the development of the national digital currency. Recently, the Bank of Japan appointed the top economist to spearhead its CBDC research department.