- Bank of Japan shelves on plans to issue central bank backed crypto.
- Like other cryptos, Facebook must comply with existing anti-money laundering guidelines.
At the time the regulators around the world are coming into terms with the announced Facebook’s cryptocurrency Libra, the deputy governor of the Bank of Japan (BoJ) Masayoshi Amamiya makes its stance towards the new project. According to the governor, all digital assets are required to comply with set regulations regarding money laundering and associated risk management.
Amamiya was speaking to Reuters on Friday and called upon central banks to be alert due to the sketchiness surrounding the soon to launch Libra especially the impact the crypto could have on the banking system and the payments industry.
“As for Libra, we must bear in mind that the potential global user-base could be enormous,” stated Amamiya.
The deputy governor also said that the central bank will not be launching its own digital asset due to the prevailing regulatory uncertainties.
“If central bank digital currencies replace private deposits, that could erode commercial banks’ credit channels and have a negative impact on the economy.”