The entity proposes the establishment of common standards for countries with similar economies. The Bank of Japan, the Federal Reserve, and the ECB would be eager to work together to issue the CBDCs.
Seven major financial institutions in the world share their intentions to establish rules and use platforms for issuing digital currencies that could lay the foundation for more effective cross-border payments.
Kazushige Kamiyama, director-general of the Department of Payment and System (BoJ), shared these ideas in a recent statement.
When the Reuters news agency consulted back on April 9, Kamiyama explained that the central bank of digital currencies (CBDC) differs in different countries due to their economy.
Advanced nations have not the same features, they could have a robust banking system, but CBDCs would highly improve efficiency in their structures as it is for emerging economies. For this reason, he believes that “it is better to establish common rules between countries with similar economic structures.”
The executive refers, in this case, to the Group of Seven or the G7. “It is desirable that the BoJ discuss common rules with the other six major central banks that make up the G7.” In this sense, the BoJ is part of a group that intends to create effective regulations regarding operations with stable coins and supporting the issuance of CBDC.
The group also includes the Federal Reserve of the United States and a European Union’s political representation.
It is also essential to consider that these ideas from the BoJ have already been at the Bank for International Settlements’s (BIS) control due to its investigations. The same goal of streamlining cross-border payments has proposed developing mechanisms for interoperability between central bank digital currencies (CBDC), a payment system already under test, which it calls mCBDC.
The Most Popular Cryptocurrency will not take fiat Money Down in the Short Term
The Bank of Japan began the first phase of experimentation with CBDCs on April 5, after starting the necessary preparations in the first quarter of 2021. In this first phase, the entity that issued the Japanese currency researched and studied the basics and functionality of your CBDC. After those preparations got their completion, the first phase of testing started its development.
Hiromi Yamaoka, director of the Bank of Japan’s transactions and payments department, has also set a position about the clash of cash vs. bitcoin. The issuing entity ended up stating that bitcoin won’t replace fiat money in the short term.
Another Bank of Japan official, Haruhiko Kuroda, governor of the financial institution, declared before the Tokyo Parliament that cryptocurrencies do not represent a threat to the yen so far.
Bank of Japan’s Advice: The World Should be Prudent about Cryptocurrencies
Likewise, the highest Japanese financial institution has promoted caution against cryptocurrencies due to the alleged fraud and theft cases committed three years ago.
Bank of Japan Deputy Governor Masayoshi Amamiya indicated on digital currencies and cryptocurrencies before the launch of his CBDC that operators must comply with money laundering and risk management regulations.
By: Jenson Nuñez
