Skeptical about private initiatives
BoJ Governor, Hurhiko Kuroda announced the news in an interview with Reuters on Tuesday. Kuroda said that they do not have launch plans, but would like to have them prepared clearly if applicable.
Kuroda is skeptical of private stablecoins, such as Libra. He tells Reuters:
“If stablecoins issued by private companies with global reach could have consequences for monetary policy and financial stability.”
Back in 2018, Vice President of Bank of Japan, Masayoshi Amamiya also expressed skepticism about new private equity stacks. He was most concerned that it could challenge the commercial banks’ place in society. Diametrically opposite concern from most bitcoin and crypto enthusiasts around the world.
Amamiya was not only negative to private players’ stablecoin, but also digital central bank money.
“If digital central bank money replaces deposits with private banks, it will eventually have a negative trend for private business growth because important lines of credit are dying out.”
The policy has now obviously shifted to a more positive attitude towards digital central bank money, perhaps accelerated by China’s big plans for state blockchain money.