Deregulating digital assets doesn’t promote technical innovation – Japan’s financial regulator

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  • Japan’s FSA commissioner Ryozo Himino emphasized the key role played by CBDCs in the digital payments sector.
  • He noted that deregulating cryptocurrencies doesn’t mean promoting technical innovation.

Ryozo Himino, the new commissioner of Japan’s Financial Services Agency (FSA), has said that the organization is wary of deregulating cryptocurrencies. 

Deregulating Bitcoins and other cryptocurrencies may not necessarily promote technical innovation, if doing so simply increases speculative trading.

With respect to COVID-19 paving the way to a cashless society, Himino highlighted the important role played by central bank digital currencies (CBDCs) in the digital payments sector. 

He spoke positively about the Bank of Japan’s recent move to accelerate research into CBDCs. According to the commissioner, challenges associated with CBDCs should not hinder the process of designing a plan. 

The new commissioner concluded that Japan “must think really hard” about the issuance of CBDCs as they come with several merits and demerits. What the country can do now is to be prepared so that when it decides to issue the currency, it can proceed with no delay, he added.

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